Is it really possible to discharge student loans in bankruptcy?

Yes, but only for a very select few.

Student loans can be similar to a tattoo. When you were young with endless possibilities, it seemed like a good idea. So many people are plagued by student loans and cannot get ahead of the Sallie Mae snowball. What relief is there? Can bankruptcy help?

Unfortunately, bankruptcy cannot help the majority of borrowers. It is heartbreaking that I have to tell clients that there is nothing bankruptcy can do to get rid of these untouchable loans (unless you can meet the impossible Brunner standard). The Brunner standard requires that the debtor in a bankruptcy prove in an adversary proceeding (a lawsuit inside of a bankruptcy) that you can never payback the student loans. This three prong test requires a showing of (i) good faith attempts to pay; (ii) that the debtor is living on a very basic budget that doesn’t allow for payment; and (iii) that the debtor has no future possibility of paying the loans back.

The difficulty of dealing with student loans is a down economy is a hot topic receiving national attention. See New York Times article “Last Plea on School Loans: Proving a Hopeless Future”. For now, discharging student loans is a hard fight and one that is hard to win.

Contact a Miami Bankruptcy Lawyer today for further information.