Discharging Student Loans

If you are looking to discharge your student loans, it is a complex process,
but not impossible.After 1990, student loans are no longer considered
“dischargeable.” This means that in order to seek relief, an adversary
proceeding is required--a lawsuit must be filed separate from the
bankruptcy case. You must prove that the payment on your student loans
causes an undue hardship. Most courts use the Brunner test to measure
the burden of the debt. It is a three-pronged evaluation that requires the
following: 1) the individual and their dependents cannot maintain a minimal
standard of living if they were required to pay the student loan,

2) there must be additional factors that guarantee this poor standard of living
will continue throughout the whole payment period, and 3) the individual has
made good faith effort to pay the loans. If you can demonstrate that you meet
these conditions, your student loan could be cancelled as a whole.

There are advantages and disadvantages to discharging student loans. To better
understand if filing for an adversary proceeding is for you, it is recommended
that you set up a consultation with your local bankruptcy attorney.