Are Student Loans Dischargeable in Bankruptcy?

Posted on Friday, September 17th, 2010  

Generally, student loans are not dischargeable in bankruptcy, unless repaying the student loan causes an “undue hardship”.  Unfortunately, meeting the standard of undue hardship can be very difficult.  Most courts use a three-part test to determine whether an undue hardship exists:

  • Whether the debtor could maintain a minimal standard of living for self and dependents if loans were required to be repaid;
  • If a minimal standard of living cannot be maintained, whether that circumstance is likely to continue for an extended amount of time; and
  • Whether a good faith effort to repay the loan has been made

Please contact our office to discuss your specific circumstances or to receive additional information about your options under bankruptcy

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