Discharging Student Loans in Bankruptcy Lawsuit Tracker

Student 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.