If you file for bankruptcy protection, how do you get a discharge of student loan debt? What is sufficient hardship?
If you file for bankruptcy protection, how do you get a discharge of student loan debt? What is sufficient hardship?
If we're talking about federally guaranteed student loans, the short answer is, you probably don't -- and even if you manage to get a discharge, odds are it will be partial.
Discharge is governed by the Brunner test -- the debtor must prove all three elements:
(1) that the debtor cannot maintain, based on current income and expenses, a "minimal" standard of living for herself and her dependents if forced to repay the loans;
(2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
(3) that the debtor has made good faith efforts to repay the loans.
See 11 U.S.C. Sec. 523(a)(8)(B).