Key takeaways
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To get student loans discharged, you’ll need to prove that they cause you “undue hardship.”
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Borrowers can choose between Chapter 7 and Chapter 13 bankruptcy, but they must file a separate adversary proceeding for student loans.
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The new processes established by the Department of Justice in 2022 has made it easier for borrowers to discharge student loans through bankruptcy.
Filing for student loan bankruptcy is never ideal, but sometimes, having debt discharged is the only way forward. This is especially true if you’ve been struggling financially and cannot repay your debts while still maintaining a minimal standard of living.
Many people believe it’s impossible to get student loans discharged in bankruptcy. That’s not the case — though you have to prove paying down the loans is causing you “undue hardship,” historically a complicated process.
The U.S. Department of Justice and Department of Education recently announced that the new guidelines for discharging student loans in bankruptcy have led to an increase in borrowers applying for and qualifying for debt relief.
How to file for student loan bankruptcy
Declaring bankruptcy on student loans is not easy. And it will affect more than just your college debt. Here are