Student Loans and Bankruptcy
To be honest discharging a student loan in bankruptcy is difficult, but it isn’t impossible. In order to do so, you have to show that repaying that loan “will impose an undue hardship on you and your dependents.”
In order to prove undue hardship, the court will apply the Brunner test (Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987). This test will show that…
- Based on your current income and expenses, you cannot maintain a minimal standard of living if forced to repay your student loans,
- Your financial situation is likely to persist for a significant portion of the repayment period; and
- You have made good faith efforts to repay the loans.
If you have questions about student loans and bankruptcy or bankruptcy in general, please call our office for a FREE consultation. 413-732-8356
