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Struggling with student loan debt and thinking bankruptcy might be your way out? It's a tough road, but you can discharge federal or private student loans if you prove "undue hardship" under the Brunner test-a legal standard courts use to decide if your loans can be wiped out. With 43 million Americans juggling $1.6 trillion in student debt, this option's a rare lifeline, but you'll need to nail three specific circumstances to convince a judge.
First up, you've got to show you can't maintain a minimal standard of living if you're forced to keep paying your loans. This means proving that after covering essentials like rent, groceries, utilities, and healthcare, there's nothing left for loan payments.
"If you're skipping meals or can't afford doctor visits, that's the kind of hardship courts look for," a bankruptcy lawyer shared on X, emphasizing how judges dig into your income, expenses, and family size. For instance, if you're a single parent earning $30,000 a year with $50,000 in loans, you might qualify-but you'll need solid proof like pay stubs and bills.
Undue hardship explained: discharging student loans in bankruptcy
Second, you need to demonstrate that your financial struggles aren't a short-term blip-they'll persist for most of the loan's repayment period, often 10 to 25 years. Courts want evidence your situation won't improve, like a permanent disability or chronic unemployment.
"I had a client with severe PTSD who couldn't work full-time-it was a clear case," an X user recalled, noting how medical records, disability documentation, and even expert testimony can seal this point. If you're 50 with a degenerative condition and no degree, that's the kind of long-term hardship they're looking for.
Lastly, you must prove you've made a good-faith effort to repay your loans before filing for bankruptcy. This means showing you've tried-making some payments, applying for deferments, or enrolling in income-driven repayment plans. "Even a few payments can show good faith," a financial advisor tweeted, adding that courts also check if you've sought loan forgiveness options. You'll file an adversary proceeding in bankruptcy court, facing off against loan servicers who'll fight to keep you on the hook. But if you've got the evidence-like payment histories or rejection letters from relief programs-you might just win.