Can I discharge my student loans through bankruptcy?
People often ask if student loans can be discharged by declaring bankruptcy. The usual response is an emphatic "NO!" It is possible to get your student loans forgiven by filing bankruptcy. This requires you to file a special motion at the Bankruptcy Court.
What evidence do you need to provide when you file your motion? Bankruptcy law requires that you prove to the court that student loans have caused you "undue financial difficulty". The "Brunner Test", which is used by many courts across the country, identifies when student loans can cause "undue financial difficulties".
According to the Brunner Test, you have to show:
If you are forced to repay loans, it is impossible to maintain a minimum standard of living for your family members or yourself. This is based o...
