{"id":397311,"date":"2026-06-29T10:59:26","date_gmt":"2026-06-29T15:59:26","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/?page_id=397311"},"modified":"2026-06-29T10:54:44","modified_gmt":"2026-06-29T15:54:44","slug":"can-student-loans-be-discharged-in-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/can-student-loans-be-discharged-in-bankruptcy.html","title":{"rendered":"Can Student Loans Be Discharged in Bankruptcy?"},"content":{"rendered":"\n
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Can Student Loans Be Discharged in Bankruptcy?<\/h1>\n\n
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\n By Balrina Ahluwalia, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Student loans can be discharged in bankruptcy, but only if you prove “undue hardship<\/span>” \u2014 a strict legal standard showing you cannot maintain a minimal standard of living<\/span> while repaying the loans, your financial problems will continue long-term, and you made good faith efforts<\/span> to repay. This requires filing a separate lawsuit called an adversary proceeding<\/span> within your bankruptcy case<\/span>, where a judge decides whether to grant full, partial, or no discharge.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Many people struggle with student loan debt<\/span>. When money is tight, filing bankruptcy<\/span> may seem like the only way to get a fresh start<\/span>. But student loans<\/a> are treated differently from most other debts. Whether you’re struggling with basic living expenses<\/span> or simply trying to understand your options, knowing the rules can help you make informed decisions.<\/p>\n

This guide explores the undue hardship<\/span> standard for discharging <\/span>student loan<\/span> debt<\/span> in bankruptcy. We cover what’s involved in the required adversary proceeding<\/span> and related considerations. We also discuss some alternatives to bankruptcy<\/a> for those who aren’t sure if it’s the best course of action in their situation.<\/p>\n

Ultimately, touching base with a lawyer usually makes sense because of the lasting impact of these decisions. A local bankruptcy attorney<\/span><\/a> can look at your specifics and give you an idea of your debt relief<\/span> options. Many also offer free consultations.<\/p>\n

In the meantime, let’s start with a review of the two main kinds of bankruptcy.<\/p>\n

Types of Bankruptcy<\/span><\/h2>\n

The federal Bankruptcy Code<\/span> sets out two main types of consumer bankruptcies: Chapter 7 and Chapter 13<\/a>. Both are handled in bankruptcy court<\/span>, but they generally follow different rules and procedures. We briefly examine both types in this section.<\/p>\n

Chapter 7 Bankruptcy<\/span><\/h3>\n

Chapter 7 is often called “liquidation bankruptcy.” This type of bankruptcy<\/span> is designed for people with limited income who can’t afford to repay their debts.<\/p>\n

To qualify for a Chapter 7 bankruptcy<\/span><\/a>, you must pass a means test<\/span> that compares your income to the median income in your state and also considers certain expenses.<\/p>\n

Once you file for Chapter 7, an automatic stay<\/span><\/a> halts collection efforts for almost all debts (including student loans) during the case.<\/p>\n

Certain unsecured debts<\/span> (like child support and recent taxes) are nondischargeable. But most credit card<\/span> and other unsecured debts<\/span> are wiped out in Chapter 7 cases through a bankruptcy discharge<\/span><\/a>.<\/p>\n

The full process is usually complete within a few months.<\/p>\n

Chapter 13 Bankruptcy<\/span><\/h3>\n

Chapter 13<\/a> is known as a “reorganization bankruptcy.” It arranges your debts into a structured repayment plan<\/span> where you make monthly payments<\/span> to a bankruptcy trustee.<\/p>\n

An automatic stay<\/span> also goes into effect when you file for Chapter 13.<\/p>\n

These plans<\/a> and cases last three to five years. After that, the remaining unsecured debt<\/span> is generally discharged.<\/p>\n

Student loans usually remain in both Chapter 7 and Chapter 13 <\/span>bankruptcy<\/span> cases<\/span> <\/a>\u2014 unless you take steps to establish undue hardship<\/span>.<\/p>\n

The Undue Hardship<\/span> Standard<\/strong><\/h2>\n

Whether someone can discharge <\/span>student loan<\/span> debt<\/span> in bankruptcy<\/a> depends on a few factors assessed under the undue hardship<\/span> standard.<\/p>\n

This is stricter than the rules for other debts. Congress created it to prevent abuse of the system, though opponents argue it has made relief too difficult for some borrowers<\/span>.<\/p>\n

Most bankruptcy courts<\/span> use a test from the Brunner v. New York State Higher Education Services Corp.<\/em><\/a> (1987) case to determine undue hardship<\/span>.<\/p>\n

The Brunner Test<\/span><\/h3>\n

To establish undue hardship<\/span> under the Brunner <\/span><\/em>test<\/span>, you must show three things:<\/p>\n

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  1. You cannot maintain a minimal standard of living<\/span> if you’re forced to make your student loan payments<\/span><\/a>.<\/li>\n
  2. Your financial problems are likely to continue for a significant part of the loan repayment period<\/span>.<\/li>\n
  3. You’ve made good faith efforts<\/span> to repay the loans.<\/li>\n<\/ol>\n

    The minority of bankruptcy courts<\/span><\/a> that don’t use the Brunner <\/span><\/em>test<\/span> instead use a \u201ctotality-of-the-circumstances\u201d test to determine undue hardship<\/span>. This looks at a borrower<\/span>‘s overall financial situation<\/span> to determine the impact of requiring repayment of student loans.<\/p>\n

    A bankruptcy judge<\/span> makes the final decision about your student loans.<\/p>\n

    Agency Guidance<\/h3>\n

    Because courts apply the undue hardship<\/span> standard differently, the U.S. Department of Justice<\/span> (DOJ<\/span>) and Department of Education<\/span><\/a> have updated their guidance in recent years to enhance consistency. The government now uses a unified attestation<\/span> form to help standardize undue hardship<\/span> assessments.<\/p>\n

    Types of Student Loans in Bankruptcy<\/h2>\n

    Bankruptcy courts<\/span> don’t handle all types of student loans in the same way. Understanding the relevant differences can help you make important decisions and know what to expect. We discuss these distinctions below.<\/p>\n

    Qualified Education Loans<\/span><\/h3>\n

    Under the federal Bankruptcy Code<\/span><\/a>, only qualified education loans<\/span> survive bankruptcy unless you can prove undue hardship<\/span>. These loans receive special protections, which is why they’re generally not dischargeable.<\/p>\n

    Loans typically qualify if they:<\/p>\n