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 on your income and expenses.
• There are circumstances that indicate that your current financial situation will continue for a substantial portion of the repayment period of the loan. You must be able to show that you won’t be able to repay the loans in the future, i.e. you have a disability.
• You made good faith efforts to repay student loans.

The Brunner Test shows that it is possible to demonstrate undue financial hardship. However, this is difficult to prove.

To find out what options are available if you are facing financial difficulties, contact an Orange County Bankruptcy Attorney at Tenina Law.

This article was written by Alla Tenina. Alla is a top tax attorney in Sherman Oaks, CA in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.