Can I Discharge Student Loan Debt?

Student Loans & Bankruptcy – Know Your Options

Every year, millions of people graduate from colleges throughout the U.S.—meaning that more and more people are now struggling to pay off the tens of thousands or hundreds of thousands of dollars they have accumulated in student loan debt. For many, it is unlikely that they will be able to pay off these loans for several years to come.

Even so, federal bankruptcy laws have made it increasingly difficult for debtors to discharge student loans through bankruptcy. While it’s not impossible, most filers will not be able to eliminate student loan debt through Chapter 7 or Chapter 13. In order to do so, one would need to demonstrate that it has caused them undue hardship.


Discharging student loan debt is difficult but not impossible. Discuss your options with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC to learn more.


Understanding Limited Exception and How Courts Examine "Undue Hardship"

According to the United States Code Section 523(a)(8) of Title 11, student loans are not dischargeable unless those loans “impose and undue hardship” on the loaner. However, it is important to keep in mind that bankruptcy courts will use different tests to determine whether or not a debtor has experienced undue hardship. One of the most common is the Brunner test, which examines three important factors.

When using the Brunner test, the court will consider the following:

  • Can the debtor maintain a minimal standard of living while repaying their loans?
  • Would the debtor remain in poverty for the duration of the repayment period?
  • Has the debtor made a good faith effort to repay their student loan debt?

If you pass this test, there is a chance that you could have your student loan fully or partially discharged in bankruptcy. However, since “undue hardship” is not defined within bankruptcy law, this decision will be made at the discretion of the court. For this reason, it is imperative that individuals considering such an option retain the help of an experienced lawyer. Failure to do so can result in a lesser chance at receiving a favorable outcome.

If the Limited Exception Does Not Apply, Can Bankruptcy Still Help Me?

The short answer to this question is “Yes, bankruptcy can still help even if the limited exception does not apply.” How? If you are facing student loan debt, you have probably been faced with annoying phone calls, emails, and other notifications that let you know you are behind on payment. While bankruptcy may not dissolve your student loan debt, bankruptcy can stop collectors from bothering you for up to 5 years. This can provide you with enough time to secure a reliable payment plan. Because these types of situations are highly complex, it is best to speak with an experienced lawyer regarding your unique situation.

Speak with a Dallas Bankruptcy Lawyer Today

At Allmand Law Firm, PLLC, we help good people struggling with tough situations. Over the years, we have helped tens of thousands of individuals find relief from their debt – and now, we are ready to help you. If you are struggling to repay your student loans, we encourage you to discuss your options with a bankruptcy attorney at our firm.

  • We have more than two decades of legal experience
  • We have handled tens of thousands of bankruptcy cases
  • We are the largest bankruptcy filing firm in the state
  • We have been featured on CBS News, ABC & Fox News

Our lead attorney, Reed Allmand, is also board certified in consumer bankruptcy law by the Texas Board of Legal Specialization. For this reason, you can trust that your future will be in good hands. Contact our team to get started on your case with a free consultation session. You have nothing to lose and everything to gain.

Have Questions About Student Loan Debt?

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Contact Allmand Law Firm, PLLC today to request your free consultation.


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