The Adversary Proceeding, Step by Step

People's Justice Research TeamUpdated June 23, 2026Fact-checked

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Filing for bankruptcy does not, by itself, discharge your student loans. Unlike credit card or medical debt, which is typically wiped out automatically, student loans require you to affirmatively ask the court to discharge them by filing a separate lawsuit inside your bankruptcy case. That lawsuit is called an adversary proceeding. Here is how it generally unfolds.

Step 1: File or Be in Bankruptcy

An adversary proceeding to discharge student loans happens within an underlying bankruptcy case — usually a Chapter 7 or Chapter 13. You must have filed for bankruptcy, or be filing, before you can bring the proceeding. Under FRBP 4007(b), a request to determine the dischargeability of a student loan may be filed at any time, so it is not limited to the early deadline that applies to some other dischargeability disputes.

Step 2: File the Complaint

You (the plaintiff) file a complaint in the bankruptcy court naming the loan holder as the defendant. For federal loans, that means the U.S. Department of Education (and any servicer or guaranty agency involved). The complaint asks the court to find that excepting the loans from discharge would impose an undue hardship under 11 U.S.C. §523(a)(8). There is no separate filing fee for an adversary proceeding seeking to determine the dischargeability of a student loan (FRBP 4007(b)).

Step 3: Complete the Attestation Form

For federal loans, the November 17, 2022 DOJ and Department of Education process (justice.gov) is used here. The borrower completes a sworn attestation form disclosing household income, assets, expenses, and circumstances affecting the ability to repay. The current form is published by the DOJ at justice.gov/d9/2024-05/StudentLoanAttestationFillableForm.pdf. Government attorneys review the attestation against standardized criteria to determine whether the undue-hardship standard is met.

Step 4: Government Review and Recommendation

Rather than automatically contesting the case, government attorneys evaluate the attestation and supporting information. Where the criteria are satisfied, they can stipulate to or recommend a full or partial discharge. This cooperative posture is what changed most dramatically under the 2022 guidance. The guidance is internal to the DOJ, however, and does not bind the court — the judge still must make the legal finding.

Step 5: The Court Decides

The bankruptcy judge applies the governing standard — the Brunner test in most circuits, or totality of the circumstances in others — and enters an order. The court may grant a full discharge, a partial discharge, or deny discharge. Reflecting cases brought under the 2022 process, studentaid.gov reports that courts granted full or partial discharge in approximately 98% of cases decided November 2022 through March 2024. That figure is windowed and source-attributed; it is not a guarantee.

Why Counsel Matters

An adversary proceeding is litigation. It involves pleadings, evidence, and the application of legal standards that vary by circuit. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency. No outcome is guaranteed; whether your loans can be discharged depends on your facts and a court's decision. An attorney can evaluate your finances, identify the standard in your circuit, and handle the proceeding on your behalf.

FAQ

Frequently Asked Questions

12 QUESTIONS

Yes — though not automatically. For decades, conventional wisdom said student loans can never be discharged, but that is inaccurate. Federal student loans can be discharged by proving "undue hardship" under 11 U.S.C. §523(a)(8) in a separate lawsuit within your bankruptcy called an adversary proceeding. A November 17, 2022 Department of Justice and Department of Education process and attestation form streamlined this (justice.gov), and studentaid.gov reports that courts granted full or partial discharge in approximately 98% of cases decided November 2022 through March 2024. That figure is windowed and attributed; it is not a promise. No outcome is guaranteed; whether your loans can be discharged depends on your facts and a court's decision. Many private loans, by contrast, may be discharged as general unsecured debt without proving undue hardship at all.

Sí, aunque no automáticamente. Durante décadas, la creencia generalizada decía que los préstamos estudiantiles nunca pueden cancelarse, pero eso es inexacto. Los préstamos estudiantiles federales pueden cancelarse al demostrar una "dificultad excesiva" bajo 11 U.S.C. §523(a)(8) en una demanda separada dentro de su bancarrota llamada procedimiento adversario. Un proceso y un formulario de declaración jurada del Departamento de Justicia y el Departamento de Educación del 17 de noviembre de 2022 lo simplificaron (justice.gov), y studentaid.gov informa que los tribunales concedieron la cancelación total o parcial en aproximadamente el 98% de los casos resueltos entre noviembre de 2022 y marzo de 2024. Esa cifra está acotada a una ventana y atribuida; no es una promesa. Ningún resultado está garantizado; si sus préstamos pueden cancelarse depende de sus hechos y de la decisión de un tribunal. Muchos préstamos privados, en cambio, pueden cancelarse como deuda general no garantizada sin demostrar una dificultad excesiva en absoluto.

"Undue hardship" is the standard in 11 U.S.C. §523(a)(8) that a borrower must meet to discharge federal student loans. Congress did not define it, so courts developed tests. Most circuits use the three-prong Brunner test: (1) you cannot maintain a minimal standard of living for yourself and your dependents if forced to repay; (2) that hardship is likely to persist for a significant part of the repayment period; and (3) you made good-faith efforts to repay. Some circuits instead weigh the totality of your circumstances. No outcome is guaranteed; whether you meet the standard depends on your facts and a court's decision.

"Dificultad excesiva" es el estándar de 11 U.S.C. §523(a)(8) que un prestatario debe cumplir para cancelar los préstamos estudiantiles federales. El Congreso no lo definió, por lo que los tribunales desarrollaron pruebas. La mayoría de los circuitos usan la prueba Brunner de tres elementos: (1) usted no puede mantener un nivel de vida mínimo para sí mismo y sus dependientes si se le obliga a pagar; (2) es probable que esa dificultad persista durante una parte significativa del período de pago; y (3) usted hizo esfuerzos de buena fe para pagar. Algunos circuitos, en cambio, sopesan la totalidad de sus circunstancias. Ningún resultado está garantizado; si usted cumple el estándar depende de sus hechos y de la decisión de un tribunal.

The Brunner test, from the 1987 case Brunner v. New York State Higher Education Services Corp., is the three-prong standard most federal circuits use to decide whether repaying student loans causes an undue hardship under 11 U.S.C. §523(a)(8). Prong one: present inability to maintain a minimal standard of living if forced to repay. Prong two: that hardship will persist for a significant part of the repayment period. Prong three: you made a good-faith effort to repay. A borrower generally must satisfy all three. Several circuits use a totality-of-circumstances standard instead. No outcome is guaranteed; the result depends on your facts and a court's decision.

La prueba Brunner, del caso de 1987 Brunner v. New York State Higher Education Services Corp., es el estándar de tres elementos que la mayoría de los circuitos federales usan para decidir si pagar los préstamos estudiantiles causa una dificultad excesiva bajo 11 U.S.C. §523(a)(8). Primer elemento: incapacidad actual para mantener un nivel de vida mínimo si se le obliga a pagar. Segundo elemento: esa dificultad persistirá durante una parte significativa del período de pago. Tercer elemento: usted hizo un esfuerzo de buena fe para pagar. Un prestatario generalmente debe satisfacer los tres. Varios circuitos usan un estándar de totalidad de las circunstancias en su lugar. Ningún resultado está garantizado; el resultado depende de sus hechos y de la decisión de un tribunal.

Yes, and the difference is significant. Federal student loans require proving undue hardship under 11 U.S.C. §523(a)(8) through an adversary proceeding. Many private student loans, however — particularly those that were not "qualified education loans" or that exceeded the school's cost of attendance — are treated as general unsecured debt and may be discharged without proving undue hardship at all (studentaid.gov; CFPB). A borrower with both kinds of debt may face two different paths. No outcome is guaranteed; whether a given loan can be discharged depends on your facts and a court's decision, so it is worth having an attorney classify each loan.

Sí, y la diferencia es significativa. Los préstamos estudiantiles federales requieren demostrar una dificultad excesiva bajo 11 U.S.C. §523(a)(8) a través de un procedimiento adversario. Muchos préstamos estudiantiles privados, sin embargo — en particular aquellos que no eran "préstamos educativos calificados" o que excedieron el costo de asistencia de la escuela — se tratan como deuda general no garantizada y pueden cancelarse sin demostrar una dificultad excesiva en absoluto (studentaid.gov; CFPB). Un prestatario con ambos tipos de deuda puede enfrentar dos caminos diferentes. Ningún resultado está garantizado; si un préstamo dado puede cancelarse depende de sus hechos y de la decisión de un tribunal, por lo que vale la pena que un abogado clasifique cada préstamo.

Bankruptcy is a serious step with real consequences that should be weighed honestly. A bankruptcy filing appears on your credit report and can affect your access to credit for years, and an adversary proceeding to discharge student loans adds litigation on top of the underlying bankruptcy. These trade-offs have to be balanced against the benefit of eliminating unmanageable debt and against alternatives such as income-driven repayment or, for those who qualify, federal forgiveness programs. The right choice depends on your full financial picture and the types of loans you hold. No outcome is guaranteed; whether discharge is the best path for you depends on your facts and, ultimately, a court's decision.

La bancarrota es un paso serio con consecuencias reales que deben sopesarse honestamente. Una declaración de bancarrota aparece en su informe de crédito y puede afectar su acceso al crédito durante años, y un procedimiento adversario para cancelar los préstamos estudiantiles añade litigio sobre la bancarrota subyacente. Estas concesiones deben equilibrarse frente al beneficio de eliminar una deuda inmanejable y frente a alternativas como el pago según los ingresos o, para quienes califiquen, los programas federales de condonación. La elección correcta depende de su panorama financiero completo y de los tipos de préstamos que tenga. Ningún resultado está garantizado; si la cancelación es el mejor camino para usted depende de sus hechos y, en última instancia, de la decisión de un tribunal.

An adversary proceeding to discharge student loans is litigation — it involves filing a complaint, completing a sworn attestation form, presenting evidence, and applying a legal standard (Brunner or totality of the circumstances) that varies by circuit. While the November 2022 process made the path more navigable, classifying federal versus private loans and meeting the undue-hardship standard generally calls for experienced counsel. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency. No outcome is guaranteed; whether your loans can be discharged depends on your facts and a court's decision. If you want an evaluation, we can connect you with an attorney who handles these cases.

Un procedimiento adversario para cancelar los préstamos estudiantiles es un litigio — implica presentar una demanda, completar un formulario de declaración jurada, presentar pruebas y aplicar un estándar legal (Brunner o totalidad de las circunstancias) que varía según el circuito. Aunque el proceso de noviembre de 2022 hizo el camino más navegable, clasificar los préstamos federales frente a los privados y cumplir el estándar de dificultad excesiva generalmente requiere un abogado con experiencia. People's Justice no es un bufete de abogados y no brinda asesoría legal; lo conectamos con abogados con licencia, y no somos una agencia gubernamental. Ningún resultado está garantizado; si sus préstamos pueden cancelarse depende de sus hechos y de la decisión de un tribunal. Si desea una evaluación, podemos conectarlo con un abogado que maneje estos casos.

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Our full coverage

Part of Our Discharging Student Loans in Bankruptcy Coverage

Discharging Student Loans in BankruptcyStudent loans are not automatically dischargeable in bankruptcy, but they are not impossible to discharge either. Federal student loans can be discharged by proving undue hardship under 11 U.S.C. §523(a)(8), which most courts evaluate using the three-prong Brunner test (some circuits use a totality-of-circumstances standard). This requires filing a separate lawsuit within your bankruptcy called an adversary proceeding. A November 17, 2022 Department of Justice and Department of Education guidance and attestation form streamlined the process — and studentaid.gov reports that courts granted full or partial discharge in roughly 98% of cases decided November 2022 through March 2024. Private student loans are treated as general unsecured debt and are dischargeable without undue-hardship proof. People's Justice is not a law firm; we connect you with licensed attorneys who can evaluate whether discharge may be possible for you.CASE OVERVIEW

Step 1: File or Be in Bankruptcy

Step 2: File the Complaint

Step 3: Complete the Attestation Form

Step 4: Government Review and Recommendation

Step 5: The Court Decides

Why Counsel Matters

Frequently Asked Questions

Can student loans really be discharged in bankruptcy?

¿Realmente se pueden cancelar los préstamos estudiantiles en la bancarrota?

What does "undue hardship" mean for student loans?

¿Qué significa "dificultad excesiva" para los préstamos estudiantiles?

What is the Brunner test?

¿Qué es la prueba Brunner?

Are federal and private student loans treated differently in bankruptcy?

¿Se tratan de forma diferente los préstamos estudiantiles federales y privados en la bancarrota?

Will discharging student loans ruin my credit, and what are the trade-offs?

¿Arruinará mi crédito cancelar los préstamos estudiantiles, y cuáles son las concesiones?

Do I need a lawyer to discharge student loans in bankruptcy?

¿Necesito un abogado para cancelar los préstamos estudiantiles en la bancarrota?

Related Guides

Part of Our Discharging Student Loans in Bankruptcy Coverage