A recent study by LendEDU determined that 32% of people filing for Chapter 7 bankruptcy had student loan debt, and almost half of their total debt came from student loans. 

It’s a common myth that student loans can’t be discharged in bankruptcy, so why aren’t more borrowers pursuing it?

If you are contemplating filing for bankruptcy due to student loan debt, consider the Brunner test to determine if you would be eligible. The Brunner test helps determine if you can get student loan debt discharged in bankruptcy, but it is very hard to pass. 

To pass the Brunner test, you must meet the following criteria:

1. Your income and expenses do not currently allow you to continue a basic or minimal standard of living for you and your dependents if you’re forced to repay your student loans.

2. This financial situation will, most likely, continue for a majority of your student loan repayment period.

3. You have made good faith efforts to try to repay your student loans before filing for bankruptcy.

Filing for bankruptcy is a serious matter, and should only be an option if you’ve exhausted all other alternatives. If you are seriously considering bankruptcy due to your student loan debt, the first thing you need to do is contact Sam Henry’s office for a consultation.