Did you know? You can discharge student loans through Chapter 7 bankruptcy—even if your case is already closed! With new rules, more borrowers than ever qualify for relief.
If you’re struggling with overwhelming student loan debt, now is the time to act. Call me today for a free consultation!
Can You Get Rid of Student Loans in Bankruptcy?
Yes! You must prove that repaying your loans would cause “undue hardship.” This is determined using the Brunner Test, and in Illinois, the Roberson case provides a slightly more flexible standard.
Even if your Chapter 7 case is already closed, you may be able to reopen it to pursue a discharge!
What Do You Need to Prove?
To discharge student loans, you must meet three key requirements:
- Present Inability to Pay
- You cannot maintain a minimal standard of living for yourself and your dependents if forced to repay your loans.
- This is essentially a bankruptcy means test, which can be determined quickly.
- Persistence of Financial Hardship (Most Important!)
- Your financial struggles are likely to continue for a significant portion of the repayment period due to:
- Disability or chronic health conditions
- Advanced age affecting job prospects
- Lack of employment opportunities or underemployment
- This is the most critical factor in securing student loan relief.
- Your financial struggles are likely to continue for a significant portion of the repayment period due to:
- Good Faith Effort to Repay
- Courts look at whether you’ve made an effort to manage your loans, such as:
- Applying for forbearance, deferment, or an income-driven repayment (IDR) plan
- Communicating with your loan servicer
- You don’t need to have made payments—just showing effort may be enough!
- Courts look at whether you’ve made an effort to manage your loans, such as:
Before You Apply: Download Your Loan File
Important Step: At some point, you’ll need to download your full loan file from StudentAid.gov.
You must do this—your attorney cannot do this for you. You can complete this step before or after contacting a lawyer, but it’s an essential part of the process.
Why Is It Now Easier to Discharge Student Loans?
Recent changes have made the process simpler and fairer. Here’s what’s new:
- Standardized Attestation Form
- The Department of Justice (DOJ) now provides a form that helps filers clearly demonstrate their financial hardship—making cases easier for courts to evaluate.
- Favorable Consideration for Persistent Hardship
- New guidelines now consider:
- Age (older borrowers are more likely to qualify)
- Health conditions (disability, chronic illness)
- Long-term financial struggles (prolonged unemployment, low income, or underemployment)
- Failure to complete a degree despite taking out loans
- New guidelines now consider:
- Presumption of Good Faith
- The court now assumes good faith if you’ve engaged with your loan servicer—meaning you don’t need to prove a history of payments.
- DOJ’s More Neutral Role
- Instead of automatically opposing student loan discharges, the DOJ reviews cases fairly—dramatically increasing the chances of approval!
How Do These Changes Benefit You?
- More borrowers are now eligible for student loan discharge
- Less expensive and time-consuming litigation
- Higher approval rates, especially for older borrowers and those facing long-term hardship
Act Now – Free Consultation Available!
If you’re drowning in student loan debt, now is the time to explore your bankruptcy options. With these new rules, you may qualify for a total or partial discharge!
Don’t wait—this opportunity may not last forever!
Call me today for a free consultation and find out if you qualify!
Let’s get you the financial relief you deserve.