Student loans can be discharged in bankruptcy, but not automatically. Federal law treats them as an exception to discharge unless repaying them would cause an undue hardship (11 U.S.C. 523(a)(8)). To prove that, you file a separate step within your bankruptcy called an adversary proceeding, and courts in Florida apply a three part standard known as the Brunner test. For years this was treated as nearly impossible, but guidance the U.S. Department of Justice put in place in late 2022 created a clearer, more consistent process, and more borrowers have obtained relief since. Whether it works in your case depends on your specific facts. At Parker & DuFresne, consultations are free.
Few debts feel as stubborn as student loans. Many people are told flatly that bankruptcy can never touch them, so they never even ask. That is not accurate. The truth is more hopeful and more nuanced: student loans are harder to discharge than credit cards or medical bills, but they are not untouchable, and the path to relief is clearer today than it has been in a long time.
This guide explains the general rule, what undue hardship actually means, the 2022 change that reshaped the process, and how student loans fit into Chapter 7 and Chapter 13. At Parker & DuFresne, our attorneys have guided North Florida families through these decisions since 1994. This is educational information, not legal advice, because the outcome always turns on your particular circumstances.
Under federal law, most student loans are not wiped out by a standard bankruptcy discharge the way credit cards and medical bills are. Section 523(a)(8) of the Bankruptcy Code carves student loans out of the discharge unless you can show that repaying them would impose an undue hardship on you and your dependents. This is different from nearly every other consumer debt, which our guide on what debts bankruptcy can eliminate covers in full. The key point is that student loans get their own separate test, and meeting it is the whole ballgame.
The Bankruptcy Code does not define undue hardship, so courts do. Courts in Florida apply the Brunner test, which looks at three things. You generally need to satisfy all three.
If you were forced to repay the loans, you could not maintain a minimal standard of living for yourself and your dependents based on your current income and expenses.
Additional circumstances show that this situation is likely to continue for a significant portion of the repayment period, not just a temporary rough patch.
You have made good faith efforts to repay the loans, for example through payments or by pursuing income driven repayment options where available.
For a long time this test earned a reputation for being almost impossible to meet, which discouraged borrowers from even trying. That reputation is now outdated.
In late 2022, the U.S. Department of Justice, working with the Department of Education, adopted new guidance for how it handles requests to discharge federal student loans in bankruptcy. Instead of fighting nearly every case, the government now uses a standardized borrower attestation form and clear criteria to evaluate hardship, and its attorneys can recommend discharge when the facts support it. The practical effect has been a more predictable process and more approvals than in the past. This guidance remains the framework today. It does not guarantee any result, but it means a well prepared case is taken seriously rather than dismissed out of hand.
Not all student debt is treated identically, and the difference can matter a great deal.
Federal student loans and most private loans that count as qualified education loans fall under the undue hardship standard. To discharge them you must bring the hardship case described above.
Certain private loans that do not meet the legal definition of a qualified education loan, such as some loans that exceeded the cost of attendance, may be dischargeable like ordinary debt without proving undue hardship. An attorney can review your loan documents to see which rules apply.
Discharging a student loan is not something that happens quietly in the background of your case. You have to ask for it by filing an adversary proceeding, which is a separate lawsuit inside your bankruptcy (Federal Rule of Bankruptcy Procedure 7001). In that proceeding you present evidence of your income, expenses, and circumstances, and the court decides whether repaying the loans would be an undue hardship. Because it is a formal legal action with deadlines and proof requirements, this is an area where experienced representation makes a real difference.
Student loan discharge can be pursued in either chapter, and the chapter you file also shapes your options in the meantime. Whether you qualify for Chapter 7 depends on your income, which our guide on the Chapter 7 means test explains. In a Chapter 13 case, even loans that are not discharged can be folded into your three to five year repayment plan, which can lower what you pay each month while the case is active and hold collection at bay. Either way, eliminating your other debts through bankruptcy can free up income to handle student loans that remain.
If student loans are part of what is weighing you down, it is worth finding out whether the current rules could help in your situation. The team at Parker & DuFresne can review your loans and your finances and explain your realistic options, including how the cost of filing works. Our guide on what bankruptcy costs in Florida is a helpful starting point, and consultations are free.
Call (904) 606-9069 to schedule your free consultation.
Yes, though not automatically. Student loans can be discharged if you prove that repaying them would cause an undue hardship under 11 U.S.C. 523(a)(8). You must raise this through a separate step in your case, and the court decides based on your specific circumstances.
Undue hardship is the legal test for discharging student loans. Courts in Florida use the three part Brunner test, which asks whether you can maintain a minimal standard of living while repaying, whether that hardship will persist, and whether you have made good faith efforts to repay.
The law itself did not change, but in late 2022 the Department of Justice adopted new guidance for handling federal student loan discharge requests. It uses a standardized attestation form and clearer criteria, which has made the process more consistent and led to more approvals than in the past.
The Brunner test is the three part standard many courts, including those in Florida, use to decide undue hardship. It considers your minimal standard of living, whether your financial difficulty is likely to persist, and whether you have made good faith efforts to repay the loans.
In effect, yes. Discharging student loans requires an adversary proceeding, which is a separate legal action filed within your bankruptcy case under Federal Rule of Bankruptcy Procedure 7001. It is where you present evidence and the court rules on undue hardship.
Federal loans and most qualified private education loans require proving undue hardship. Some private loans that do not meet the legal definition of a qualified education loan may be dischargeable like ordinary debt. Reviewing your loan documents is the way to tell which rules apply.
Yes. In Chapter 13, student loans that are not discharged can be included in your three to five year repayment plan. This can reduce what you pay monthly while the case is active and keep collection efforts on hold, even though the remaining balance survives unless it is discharged.
Not without advice. Good faith effort to repay is part of the hardship test, so how you handle payments can matter. Speak with an attorney before changing anything, so your actions support rather than undermine a possible discharge.
Seeking a hardship discharge adds a separate proceeding to your case, which takes additional time and preparation. Many people still find it worthwhile. An attorney can help you weigh the effort against the potential benefit for your situation.
The strength of a case depends on your income, expenses, health, family situation, and repayment history. The best way to find out is to have an attorney review your specific facts against the current standard. Consultations at Parker & DuFresne are free.
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