While most debtors will not be able to discharge student loan debt in Chapter 7, it has been done. To do so, you will want to work with a phoenix chapter 7 bankruptcy lawyer that can help advise you on the process. Below we outline what the Brunner test is and how it factors into a court’s decision regarding discharging student loan debt.
Undue Hardship
To be able to discharge student loan debt in bankruptcy, a debtor will need to prove that repaying the student loan will cause an undue hardship. A court will use various tests to determine this. One such test is the Brunner test.
The Brunner Test
Under the Brunner test , a debtor is able to discharge student loans if he or she meets all three of the following factors:
- Poverty. Based upon a debtor’s current income and expenses, he or she cannot maintain a minimal standard of living for himself or herself as well as any dependents if he or she is forced to repay the loans.
- Persisitence. A debtor’s current financial situation is likely to continue for a significant part of the period of repayment.
- Good faith. A debtor has made a good faith effort to repay his or her student loans.
Working with a Bankruptcy Attorney
There are some things that can help you discharge your student loan debt in bankruptcy, and the main one is working with a bankruptcy attorney. A bankruptcy attorney will be familiar with what the courts in your jurisdiction have done in the past. While discharging student loan debt in bankruptcy is rare, due to the fact that proving an undue hardship can be difficult, your chances improve immensely when you work with a skilled bankruptcy attorney.
Working with AZBK Lawyers
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix chapter 7 bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
AZBK Lawyers 668 N. 44th St., Ste 320, Phoenix, AZ 85008 (602) 648-3274