There’s a common myth that you can’t wipe out student loan debts by filing for bankruptcy. While it’s more difficult and involved than getting rid of other debts, it’s possible to discharge both private and federal student loans with the help of a lawyer. This guide will discuss how the process works. 

How Do You File for Student Loan Bankruptcy? 

You won’t be able to discharge student loans until the end of the bankruptcy process. The first step is working with an attorney—particularly one with student loan experience—to file for Chapter 7 or Chapter 13. If you’ve already gone through the process but didn’t attempt to get rid of student loans, your lawyer can reopen the case. 

Next, an attorney will need to start an additional lawsuit called an adversary proceeding. They’ll file a written complaint highlighting the details of the case. After that, the bankruptcy case will be litigated until the judge decides whether the loans will be discharged fully, partially, or not at all.  

What Is Undue Hardship? 

During the adversary proceeding, an attorney will need to prove that the student loans pose undue hardship. This term isn’t defined by the U.S. Bankruptcy Code, so courts have different interpretations. Many utilize the Brunner Test, which requires you to prove three points.

First, an attorney will need to show that paying the student loans would prevent you from maintaining a minimal standard of living. Meaning, you must have done everything you can to grow your income while cutting costs.

Second, they’ll need to present proof that your circumstances aren’t likely to change during the loan period. For example, this can be met if you have a mental or physical disability, few prospects for increasing your income, or you got a poor education. Lastly, a lawyer will need to prove that efforts have been made to pay the loans, such as making partial payments or trying to negotiate a payment plan with better terms.

When you need a reliable bankruptcy attorney, contact Hurtt & Johnson. Serving Dalton and Calhoun, GA, they’ve been working with clients since 1977. They’ll help you determine the best bankruptcy option, discharge any student loans, and improve your financial future. Their lawyers will answer any questions, communicate regularly, and explain the filing and legal processes. Call (706) 226-5425 to set up a consultation, or visit the website to learn more about their services.