# bankruptcystudentloans.org -- Full Content > Last updated: 2026-09-25 This file contains the full text content of all pages on bankruptcystudentloans.org. Part of the Open Bankruptcy Project (openbankruptcyproject.org). --- ## Filing a Student Loan Adversary Proceeding [2026]: 11 USC 523(a)(8) and DOJ/ED 2022 Attestation Source: https://bankruptcystudentloans.org/adversary-proceeding.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options How to File Filing an Adversary Proceeding for Student Loan Discharge The adversary proceeding is a lawsuit within your bankruptcy case. Filing fee: $350. Here is the step-by-step process. Home›Student Loans in Bankruptcy›Filing an Adversary Proceedingfor Student Loan Discharge What Is an Adversary Proceeding? An adversary proceeding is a separate lawsuit filed within your bankruptcy case. To discharge student loans, you must prove "undue hardship" under 11 U.S.C. section 523(a)(8). This requires filing a formal complaint, naming each lender or loan servicer as a defendant, and presenting evidence that repaying the loans would cause you undue hardship. The proceeding is governed by Part VII of the Federal Rules of Bankruptcy Procedure, which mirrors the Federal Rules of Civil Procedure in many respects. You can file an adversary proceeding in either Chapter 7 or Chapter 13 bankruptcy. The standard for discharge is the same in both chapters. Many bankruptcy attorneys recommend filing during an active case so the court already has jurisdiction over your financial situation. Step-by-Step Process File bankruptcy (Chapter 7 or Chapter 13) Prepare the complaint - identify each loan, name each lender, allege undue hardship File and pay the $350 fee Serve the defendants - each lender or servicer must receive a copy of the complaint and summons Complete DOJ attestation (federal loans - 2022 guidance). The Department of Justice reviews your financial information and may recommend discharge, partial discharge, or opposition Discovery and settlement negotiations - exchange documents, take depositions, and negotiate. Many cases settle at this stage Trial (if no settlement) - the judge hears testimony and evidence, then rules on discharge Costs The cost of an adversary proceeding depends primarily on whether you hire an attorney and whether the case settles or goes to trial. The filing fee is set by the Judicial Conference and is the same in all 94 federal bankruptcy courts. ItemCost Adversary proceeding filing fee$350 Attorney fees (contested case)$1,500 - $5,000+ Attorney fees (quick settlement)$1,500 - $3,000 Pro se filing$350 only Some legal aid organizations and law school bankruptcy clinics handle adversary proceedings at no cost. If your case qualifies under the 2022 DOJ guidance, the government may support discharge, which significantly reduces the litigation burden and cost. See free bankruptcy options for ways to reduce costs. Timeline Adversary proceedings follow a litigation timeline separate from the main bankruptcy case. The overall length depends on whether the Department of Justice evaluates and supports discharge (which speeds things up considerably) or whether the case is contested through trial. Filing to response: 30-60 days DOJ evaluation (federal loans): 60-120 days Discovery and negotiation: 3-6 months Trial (if needed): 6-12 months from filing Many cases settle during discovery, especially when the DOJ recommends discharge under the 2022 guidance. In cases where the government agrees the debtor qualifies, the entire proceeding may conclude in 3-6 months. Contested cases that go to trial typically take 6-12 months. The 2022 DOJ Attestation Process For federal student loans, the 2022 DOJ guidance created a standardized attestation form that borrowers complete early in the adversary proceeding. This form asks for detailed information about your income, expenses, employment history, health conditions, dependents, and efforts to repay. The DOJ uses this information to evaluate your case against the applicable undue hardship standard. The attestation process can lead to one of three outcomes: Full discharge recommendation: The DOJ determines that you meet the undue hardship standard and recommends that the court grant a full discharge of your student loans. Partial discharge recommendation: The DOJ recommends reducing your loan balance, lowering the interest rate, or modifying repayment terms rather than full discharge. Opposition: The DOJ determines that your circumstances do not support discharge and opposes your petition. Even in this case, the court - not the DOJ - makes the final decision. When the DOJ recommends discharge, most courts grant it. Having the federal government agree that your loans should be discharged dramatically shifts the dynamics of the proceeding and often leads to resolution without trial. What to Include in Your Complaint The adversary complaint is the document that initiates the proceeding. A strong complaint should include: Each loan identified: List every student loan by lender, servicer, account number, original balance, and current balance. Named defendants: Each lender, servicer, and the U.S. Department of Education (for federal loans) must be named as a defendant. Factual allegations: Describe your financial situation in detail - income, expenses, employment history, health conditions, dependents, and efforts to repay. Legal basis: Cite 11 U.S.C. Section 523(a)(8) and the applicable undue hardship test (Brunner or totality of the circumstances) for your circuit. Prayer for relief: State specifically what you are asking the court to do - typically full discharge, or alternatively partial discharge or modified repayment terms. Pro Se Considerations You have the legal right to file an adversary proceeding without an attorney. However, the proceeding follows formal litigation rules, including pleading requirements, discovery deadlines, and rules of evidence at trial. Courts hold pro se litigants to the same procedural standards as attorneys, so missing a deadline or filing an improper motion can result in your case being dismissed. Pro se filers face several specific challenges in student loan adversary proceedings: Discovery: The opposing party will request documents and may take your deposition. You must respond within strict deadlines and comply with the Federal Rules of Bankruptcy Procedure. Motions practice: Lenders may file motions to dismiss or motions for summary judgment. You must respond with legal arguments supported by evidence. Trial preparation: If the case goes to trial, you must present testimony, introduce exhibits, and comply with the rules of evidence. The judge may be sympathetic but cannot advocate for you. If you choose to file pro se, consider these resources: legal aid organizations that may take your case for free, law school bankruptcy clinics that handle student loan adversary proceedings, and court self-help centers that provide forms and procedural guidance. See prosedebtors.org for detailed pro se filing instructions. Free help may be available. The National Consumer Law Center maintains a list of legal aid organizations that handle student loan adversary proceedings. Many law schools operate bankruptcy clinics that take these cases at no cost. Check with your local legal aid office before deciding to go it alone. Related The Brunner Test Undue Hardship prosedebtors.org 523a.org Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → People Also Ask Can I discharge student loans in bankruptcy? What is the Brunner test for student loans? Can private student loans be discharged in bankruptcy? View all questions → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Brunner Test for Student Loan Discharge [2026]: Three Prongs and Circuit Splits Source: https://bankruptcystudentloans.org/brunner-test.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options The Gatekeeper Test Since 1987 The Brunner Test: How Courts Decide Student Loan Discharge For nearly 40 years, the Brunner test has been the primary obstacle between student loan borrowers and bankruptcy relief. Understanding its three prongs - and how courts actually apply them - is the first step toward building a successful discharge case. Home›Student Loans in Bankruptcy›The Brunner Test: How Courts DecideStudent Loan Discharge The Brunner test is a three-prong legal standard used by most federal circuits to determine whether student loans can be discharged in bankruptcy under the 'undue hardship' exception. Established by Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987), the debtor must prove: (1) inability to maintain a minimal standard of living while repaying, (2) that the financial hardship is likely to persist, and (3) that the debtor made good-faith efforts to repay. The Bottom Line The Brunner test requires you to prove three things: you cannot pay now, your situation is unlikely to improve, and you have tried in good faith to repay. Most circuits use this test, but courts are applying it with increasing flexibility. The "certainty of hopelessness" era is fading. Where the Brunner Test Came From In 1987, Marie Brunner filed for Chapter 7 bankruptcy just months after graduating from college. She had $9,250 in student loans and had never made a single payment. The Second Circuit Court of Appeals ruled against her in a brief, unpublished opinion - Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987) - establishing a three-part test for determining "undue hardship." What makes this remarkable is how far-reaching this short opinion became. Despite being just a few paragraphs long, the Brunner framework was adopted by circuit after circuit until it became the dominant standard across the country. Legal scholars have called it one of the most influential unpublished opinions in American law. The test was designed for a specific situation: a recent graduate who had never tried to repay. Over the decades, courts stretched it far beyond that context, applying it to middle-aged workers with chronic illnesses, retirees on fixed incomes, and veterans with disabilities. Only recently have courts and the Department of Justice begun pushing back against this rigid application. The Three Prongs Explained Prong 1: Current Inability to Pay 1 What it requires Based on your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if forced to repay the student loans. This is the most straightforward prong. The court looks at your budget: income on one side, necessary expenses on the other. If there is nothing left after covering basic needs - food, housing, utilities, transportation, medical care - then you satisfy this element. "Minimal standard of living" does not mean poverty-level. Courts have recognized that debtors are entitled to more than bare survival. You do not need to give up a modest car, basic cell phone, or reasonable housing to satisfy this prong. However, courts will scrutinize luxury spending, and lifestyle choices that appear extravagant will hurt your case. Evidence That Helps Tax returns - at least 3 years showing income levels Pay stubs or proof of current earnings Monthly budget with documentation for each expense Medical bills and insurance costs Childcare expenses and dependent documentation Housing costs relative to your area (courts compare to local norms) Common mistake: Some debtors voluntarily reduce their income (cutting hours, taking a lower-paying job) before filing. Courts view this negatively. Your income should reflect your genuine earning capacity, not a strategic reduction. Prong 2: Persistence of Hardship 2 What it requires Additional circumstances exist indicating that your financial situation is likely to persist for a significant portion of the repayment period. This is historically the hardest prong. Courts want to see that your inability to pay is not temporary - that something about your situation makes it unlikely you will ever be able to repay the loans comfortably. In the worst applications of Brunner, courts demanded a "certainty of hopelessness" - essentially requiring proof that the debtor would never earn enough to repay. This made discharge virtually impossible for anyone under retirement age. The debtor with a chronic illness could be denied because they might recover. The debtor with no degree could be denied because they might get one someday. That extreme reading is losing ground. Many courts now apply a "more likely than not" standard: is it more likely than not that your financial difficulties will continue for a significant portion of the repayment period? This is a substantial improvement for debtors. Factors Courts Consider Age - older debtors have less time for income growth Health conditions - chronic illness, disability, or mental health issues Education and skills - limited credentials or obsolete training Employment history - long-term unemployment or underemployment patterns Dependents - children, elderly parents, disabled family members Industry outlook - whether your field is growing or declining Criminal record - documented barriers to employment Maximized earning potential - already working full time in your field Key development: Courts are increasingly recognizing that income-driven repayment plans with 20-25 year horizons essentially prove persistence. If the government's own calculator says you will be in an income-driven plan for decades, that supports the persistence prong. Prong 3: Good Faith Effort to Repay 3 What it requires You have made good-faith efforts to repay the student loans. This prong asks whether you have done what a reasonable person in your situation would do to manage the debt. Courts do not expect you to make payments you cannot afford. They want to see that you engaged with the system in good faith. Good faith does not require perfection. It means you tried. You applied for income-driven repayment. You contacted your servicer when you fell behind. You did not take out the loans with the intention of filing bankruptcy immediately. You explored your options before seeking discharge. Actions That Demonstrate Good Faith Applied for income-driven repayment (IBR, PAYE, REPAYE, or SAVE) Made payments when able - even small or sporadic payments count Sought deferments or forbearances during financial hardship Contacted the loan servicer to discuss options Attempted to maximize income through employment, training, or education Minimized unnecessary expenses in your budget Did not live extravagantly while claiming inability to pay Actions That Undermine Good Faith Filing for bankruptcy immediately after graduation with no attempt to repay Refusing to apply for income-driven repayment plans Making large discretionary purchases while claiming poverty Voluntarily reducing income to appear unable to pay Never contacting the servicer or responding to collection attempts Which Circuits Use the Brunner Test Circuit Test Used Notable Trend 1st CircuitBrunnerModerate application 2nd CircuitBrunner (origin)Where the test began; some flexibility emerging 3rd CircuitBrunnerStrict historically; softening post-DOJ guidance 4th CircuitBrunnerMixed application across districts 5th CircuitBrunnerGenerally strict 6th CircuitBrunnerSome courts apply flexibly 7th CircuitBrunnerModerate; notable partial discharge cases 8th CircuitTotality of CircumstancesMost debtor-friendly standard 9th CircuitBrunnerLarge circuit with varied application 10th CircuitBrunnerSome flexibility in recent decisions 11th CircuitBrunnerModerate to strict Even within Brunner circuits, individual bankruptcy judges have significant discretion in how they apply the test. Some judges within the same district may reach different conclusions on similar facts. This is one reason why knowing your local court's tendencies is valuable. Key Cases That Shaped the Brunner Test The Foundation Brunner v. NYSHESC, 831 F.2d 395 (2d Cir. 1987) - The original case. Marie Brunner sought discharge of $9,250 within months of graduation. The Second Circuit established the three-prong test and denied discharge because she had never attempted to repay and was a healthy recent graduate with no dependents. The "Certainty of Hopelessness" Era Brightful v. Pennsylvania Higher Ed. Assistance Agency, 267 F.3d 324 (3d Cir. 2001) - Articulated the "certainty of hopelessness" standard, requiring debtors to show they would essentially never be able to repay. This was the high-water mark for creditor-friendly Brunner application. The Pushback Krieger v. Educational Credit Management Corp., 713 F.3d 882 (7th Cir. 2013) - Judge Easterbrook criticized the "too restrictive" application of Brunner and noted that courts were adding requirements not found in the original test. This decision helped loosen the standard in the 7th Circuit. The 8th Circuit Alternative Long v. Educational Credit Management Corp., 322 F.3d 549 (8th Cir. 2003) - The Eighth Circuit explicitly rejected Brunner in favor of a totality-of-the-circumstances approach, examining the debtor's past, present, and reasonably reliable future financial resources against living expenses and the loan repayment obligation. Recent Developments Rosenberg v. New York State Higher Education Services Corp., 610 B.R. 454 (Bankr. S.D.N.Y. 2020) - Chief Bankruptcy Judge Morris called the Brunner test "an unfair standard" and "punitive" in a widely cited decision, signaling growing judicial dissatisfaction. Brunner vs. Totality of the Circumstances The 8th Circuit's totality test examines the same basic question - is repayment an undue hardship? - but does so holistically rather than through rigid prongs. Under the totality test, a court considers: The debtor's past, present, and reasonably reliable future financial resources The debtor's and dependents' reasonable living expenses Any other relevant facts and circumstances unique to the case The practical difference is significant. Under Brunner, failing any single prong means denial - even if your overall situation clearly constitutes hardship. Under the totality test, a court can weigh all factors together. A debtor who made some payments but has deteriorating health might fail Brunner's strict prong-by-prong analysis but succeed under a holistic review. Growing trend: Even within Brunner circuits, some bankruptcy judges have begun applying the three prongs more flexibly, essentially moving toward a totality approach while nominally using the Brunner framework. This trend accelerated after the 2022 DOJ guidance. Common Reasons Brunner Claims Are Denied Understanding why claims fail is just as important as knowing the test. The most common reasons for denial include: Never applied for income-driven repayment. Courts view this as a failure of good faith. If you have not at least applied for IBR, PAYE, or SAVE, you are unlikely to pass prong three. Courts reason that if the government offers a plan with payments based on your income, you should at least try it before seeking discharge. Debtor is young and healthy. Courts may find that a 30-year-old with no health issues and a college degree has earning potential that will eventually allow repayment, even if current income is low. This is where the persistence prong becomes difficult. Lifestyle inconsistencies. A debtor claiming inability to pay while taking vacations, eating out regularly, or maintaining luxury subscriptions will face credibility problems. Courts examine Schedules I and J closely. Voluntary underemployment. Working part-time by choice, or taking a lower-paying job than your qualifications support, undermines both prongs one and three. Recent borrowing. Taking out loans recently and filing immediately raises bad faith concerns. Courts look at the gap between borrowing and filing. No attempt to repay. Zero payment history, combined with no documentation of hardship during the repayment period, makes good faith nearly impossible to prove. How to Build a Brunner Case: Practical Steps If you are considering seeking student loan discharge, the time to start building your case is before you file the adversary proceeding. Here are concrete steps: Before Filing Apply for income-driven repayment - even if your payment would be $0. This creates documentation of good faith and generates government records of your financial situation. Gather medical records - if health is a factor, get documentation from every treating provider. Diagnoses, prognoses, and functional limitations should be in writing. Compile employment history - document every job, job search, application, and rejection. Show that you have tried to maximize your income. Track expenses meticulously - keep receipts and records for at least 3-6 months before filing. A detailed, honest budget is critical. Save tax returns - at least 3 years. Tax returns are the single most important income document. During the Adversary Proceeding Be honest on all forms - any inconsistency between your bankruptcy schedules and your adversary proceeding testimony will be exploited. Consider expert witnesses - vocational experts can testify about your earning capacity; medical experts about your limitations. Submit the DOJ attestation form - for federal loans, this can lead to the government recommending discharge rather than opposing it. Be prepared for a settlement offer - many cases settle with partial discharge or modified terms rather than going to full trial. The Partial Discharge Option Not every case is all-or-nothing. Many courts recognize the authority to grant a partial discharge - reducing the loan balance, eliminating interest, or modifying repayment terms - even when full discharge is not warranted. Partial discharge outcomes have become increasingly common and can provide meaningful relief. Examples include: Discharging accrued interest while leaving principal intact Reducing the balance by a percentage (e.g., 50% discharge) Setting a fixed repayment amount over a specific period Eliminating penalties and fees while maintaining a reduced balance If you are not confident you can meet all three Brunner prongs but your situation clearly involves significant hardship, a partial discharge outcome may be realistic and meaningful. The 2022 DOJ Guidance and the Brunner Test The November 2022 DOJ guidance does not replace the Brunner test - that would require a Supreme Court decision or act of Congress. What the guidance does is change how the federal government responds to borrowers who file adversary proceedings for federal student loan discharge. Before the guidance, DOJ attorneys opposed nearly every discharge petition as a matter of routine, forcing borrowers to fight the United States government in court. The new guidance instructs DOJ attorneys to evaluate each case using a standardized attestation form. If the borrower's circumstances satisfy the applicable test (Brunner or totality), the DOJ recommends discharge rather than opposing it. This matters enormously in practice. When the federal government tells the court it supports your discharge, judges are far more likely to grant relief. The adversary proceeding shifts from an uphill battle against the government to what may be a largely uncontested proceeding. For borrowers who clearly satisfy the Brunner prongs, the DOJ guidance has turned what used to be a long, expensive fight into a streamlined process that can resolve in months rather than years. Key point: The DOJ guidance applies only to federal student loans. If you have private student loans, you must litigate directly against the lender - but private lenders may be more willing to settle because they bear their own litigation costs. See our private student loan discharge guide for details. Frequently Asked Questions What is the Brunner test? A three-prong test for student loan discharge in bankruptcy. You must prove: (1) you cannot maintain a minimal standard of living while repaying, (2) your hardship is likely to persist for a significant portion of the repayment period, and (3) you have made good-faith efforts to repay. It was established in 1987 and is used by most federal circuit courts. Which courts do not use the Brunner test? The 8th Circuit (covering Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota) uses the more flexible "totality of the circumstances" test. Some individual bankruptcy judges in other circuits have also moved toward a more holistic approach, particularly after the 2022 DOJ guidance. Can you pass the Brunner test if you are young and healthy? It is harder but not impossible. The persistence prong is the biggest challenge for young, healthy debtors. However, courts increasingly consider factors beyond age and health: limited education, poor job market in your field, caregiving responsibilities, and other circumstances can establish persistence even for younger debtors. The 2022 DOJ guidance also de-emphasizes age as a factor. What is the "certainty of hopelessness" standard? Some courts historically required debtors to prove a "certainty of hopelessness" - that their financial situation would never improve. This extreme interpretation of prong 2 made discharge virtually impossible. The phrase comes from case law, not the statute. Many courts and commentators have criticized it, and it is falling out of favor. The DOJ's 2022 guidance explicitly rejects this standard. Do I need a lawyer to argue the Brunner test? While you can technically file a pro se adversary proceeding, student loan discharge cases are complex enough that legal representation is strongly recommended. An attorney experienced in student loan discharge can help you gather the right evidence, frame your argument effectively, and navigate the DOJ attestation process. Legal aid organizations may handle these cases for free if you qualify. Is the Brunner test likely to be replaced? There is growing momentum to replace or reform the Brunner test. Congressional proposals like the FRESH START Act would eliminate the undue hardship requirement entirely after a waiting period. The DOJ's 2022 guidance effectively created a parallel process for federal loans. Some circuits are applying Brunner more flexibly. While a nationwide replacement has not yet occurred, the trend is clearly toward making discharge more accessible. Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope; dischargeable without undue-hardship showing. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative; the 8th Circuit rejected the rigid Brunner three-prong framework. Related Resources Understanding Undue Hardship - the broader legal standard behind the Brunner test How to File an Adversary Proceeding - the step-by-step process for seeking discharge Recent Changes in Student Loan Bankruptcy - DOJ guidance, FRESH START Act, and circuit developments Private Student Loans - different rules may apply Section 523(a) Explained - the broader discharge exception framework Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → People Also Ask Can I discharge student loans in bankruptcy? What is the Brunner test for student loans? Can private student loans be discharged in bankruptcy? View all questions → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Student Loans in Chapter 13 [2026]: Partial Discharge, Plan Treatment, and 1322(b)(5) Cure Source: https://bankruptcystudentloans.org/chapter-13-student-loans.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options Chapter 13 Strategy Student Loans in Chapter 13 Bankruptcy In Chapter 13, student loans are treated as unsecured debt. Payments may be reduced. The codebtor stay protects cosigners. Home›Student Loans in Bankruptcy›Student Loans inChapter 13 Bankruptcy How Student Loans Are Treated in Chapter 13 Chapter 13 bankruptcy does not discharge student loans automatically. No chapter of bankruptcy does. Student loans are classified as general unsecured debt in your Chapter 13 repayment plan, placed alongside credit card balances, medical bills, and personal loans. What Chapter 13 does provide is a structured repayment period with meaningful protections that can give you breathing room while you decide whether to pursue discharge through an adversary proceeding. Classified as unsecured debt: Student loans are paid alongside other unsecured creditors. The trustee distributes your monthly plan payment pro rata, meaning student loans receive the same percentage as credit cards and medical bills. They do not receive priority treatment. Reduced payments: Your monthly payment is based on your disposable income - the difference between your income and your reasonable necessary expenses. This is typically far less than the standard repayment amount on your student loans. No collection during the plan: The automatic stay under 11 U.S.C. Section 362 prevents lenders from garnishing your wages, intercepting your tax refunds, or offsetting your Social Security benefits for the entire duration of the plan (3 to 5 years). Codebtor stay (Section 1301): One of Chapter 13's most valuable features for student loan borrowers. The codebtor stay protects cosigners from collection during the plan. This is critical for Parent PLUS loans and any loan with a family member as cosigner. Adversary proceeding during the plan: You can file an adversary proceeding to discharge your student loans while the Chapter 13 plan is active. This gives you the benefit of the automatic stay and codebtor stay while the discharge litigation is pending. Ch.7 vs Ch.13 for Student Loans FactorCh.7Ch.13 Adversary proceedingYesYes Reduced paymentsNoYes Codebtor stayNoYes Protection duration3-4 months3-5 years The Interest Problem Interest continues accruing on student loans during your Chapter 13 plan. Since your plan payment is based on disposable income, not the contractual student loan payment, your monthly contribution to student loans is usually far less than the amount needed to cover interest. The result: your balance grows throughout the plan. For federal loans, interest capitalization during a 3-to-5-year plan period can add thousands or even tens of thousands to your balance. A borrower with $60,000 in student loans at 6.8% interest who pays $100 per month through the plan will owe approximately $75,000 when the plan ends. If you complete your Chapter 13 plan without filing an adversary proceeding, you exit bankruptcy owing more than when you started. This is why strategic use of the adversary proceeding is critical for borrowers who have any chance of meeting the undue hardship standard. Private student loans present an additional complication. Unlike federal loans, private lenders are not bound by income-driven repayment options after bankruptcy. If your private loan balance grows during the plan, you may face aggressive collection - including lawsuits and judgment liens - immediately upon case closure. Consider whether a Chapter 7 filing combined with an adversary proceeding might be a better strategy if you do not need the codebtor stay or mortgage cure features of Chapter 13. Post-plan strategy: If you complete Chapter 13 without discharging your student loans, immediately apply for an income-driven repayment plan for any federal loans. Your IDR payment may be $0 per month if your income is low enough, and the forgiveness clock starts ticking. When Chapter 13 Is the Better Choice for Student Loans Chapter 13 is not always the best chapter for student loan borrowers, but it offers distinct advantages in several situations: You have a cosigner: The codebtor stay protects cosigners from collection. If a parent, spouse, or other family member cosigned your student loans, Chapter 13 shields them for the duration of the plan. Chapter 7 does not offer this protection. You are behind on your mortgage or car: Chapter 13 lets you cure mortgage arrears and restructure car loans through the plan, while simultaneously addressing student loans. If you need to save your home or vehicle, Chapter 13 handles everything in one case. You need time: The 3-to-5-year plan gives you time to build your adversary proceeding case, gather evidence, and consult with attorneys - all while the automatic stay prevents collection. You have non-exempt assets: If you own property that would be liquidated in Chapter 7 (such as equity in a home beyond your exemption), Chapter 13 lets you keep that property by paying its value to creditors through the plan. Your income is too high for Chapter 7: If you fail the means test, Chapter 13 may be your only bankruptcy option. The good news is that you can still pursue a student loan adversary proceeding in Chapter 13. Related How to File IDR vs Bankruptcy chapter13plan.org Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Related Resources Rule 9037 Compliance Guide Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Student Loans & Bankruptcy FAQ - Discharge and Hardship Options Source: https://bankruptcystudentloans.org/frequently-asked-questions.html Skip to main content bankruptcystudentloans.org Home FAQ Español Student Loans & Bankruptcy FAQ - Discharge and Hardship Options Common questions about student loan discharge in bankruptcy, the Brunner test, adversary proceedings, and recent changes making discharge easier. Open Bankruptcy Project›bankruptcystudentloans.org›FAQ Can student loans be discharged in bankruptcy? Yes, but it requires proving 'undue hardship' through an adversary proceeding (a lawsuit within the bankruptcy case). While historically difficult, recent DOJ guidance (2022) and growing judicial willingness have made student loan discharge more achievable than many people believe. What is the Brunner test? The Brunner test is the most common standard for student loan discharge. You must prove three things: (1) you cannot maintain a minimal standard of living while repaying the loan, (2) your financial situation is likely to persist for a significant portion of the repayment period, and (3) you made good-faith efforts to repay. What is an adversary proceeding for student loans? An adversary proceeding is a separate lawsuit filed within your bankruptcy case asking the court to declare your student loans dischargeable due to undue hardship. You must file a complaint, serve the loan holder, and present evidence at trial or negotiate a settlement. Are private student loans easier to discharge than federal loans? The same undue hardship standard applies to both. However, some private loans may not qualify for the student loan exception at all if they were not 'qualified education loans' under the tax code. Loans from unaccredited schools or non-degree programs may be dischargeable without proving hardship. What changed with the DOJ's 2022 student loan guidance? In November 2022, the DOJ issued guidance directing its attorneys to use a new framework for evaluating undue hardship claims, making it easier for qualifying borrowers to get consent to discharge. The DOJ now considers income, expenses, and circumstances rather than applying the Brunner test rigidly. Do I need a lawyer to discharge student loans in bankruptcy? An attorney is highly recommended for adversary proceedings because they involve litigation. However, some debtors have successfully discharged student loans pro se. Legal aid organizations and law school clinics sometimes handle student loan adversary proceedings for free. Can I get a partial discharge of student loans? Yes. Courts can grant partial discharge, reducing the loan balance even if they do not eliminate it entirely. Some courts discharge the interest while requiring repayment of principal, or discharge a portion of the total balance based on the debtor's ability to pay. What evidence do I need for an undue hardship claim? Key evidence includes: income documentation, medical records showing disability or chronic illness, evidence of job search efforts, documentation of expenses, proof of good-faith repayment attempts, expert testimony about future earning capacity, and age-related factors that limit income growth. Can I discharge Parent PLUS loans in bankruptcy? Yes. Parent PLUS loans are subject to the same undue hardship analysis as other student loans. Parents who took out loans for their children's education and now face financial hardship can seek discharge through an adversary proceeding. What if I have both federal and private student loans? You can seek to discharge some or all of your student loans. The adversary proceeding can address both federal and private loans, though they may involve different defendants (the DOE for federal, the private lender for private loans). Strategy may differ for each. Is income-driven repayment better than bankruptcy for student loans? Income-driven repayment (IDR) plans like SAVE, IBR, and ICR can reduce payments to as low as $0 per month based on income. IDR may be a better option if you do not meet the undue hardship standard. After 20-25 years of payments (10 years for PSLF), remaining balances are forgiven. How long does a student loan adversary proceeding take? Adversary proceedings typically take 6-18 months from filing to resolution. Many cases settle before trial as lenders evaluate the strength of the undue hardship claim. The DOJ's 2022 guidance has accelerated settlements in federal loan cases. Can I discharge student loans if I'm disabled? Disability significantly strengthens an undue hardship claim. If your disability prevents you from earning enough to repay the loans, courts are much more likely to grant discharge. The DOJ guidance specifically identifies disability as a factor favoring discharge. What is the 'totality of circumstances' test? The totality of circumstances test (used in the 8th Circuit and some other courts) is a more flexible alternative to the Brunner test. Instead of three rigid prongs, the court considers all relevant factors including income, expenses, health, age, dependents, and other circumstances. Has anyone actually gotten student loans discharged? Yes. Despite the common myth that student loans 'can never' be discharged, thousands of borrowers have obtained full or partial discharge. A 2011 study found that borrowers who actually filed adversary proceedings received some relief about 40% of the time. The success rate has likely increased since the 2022 DOJ guidance. Yes, but it requires proving 'undue hardship' through an adversary proceeding (a lawsuit within the bankruptcy case). While historically difficult, recent DOJ guidance (2022) and growing judicial willingness have made student loan discharge more achievable than many people believe. More Resources on This Site Brunner Test Adversary Proceeding Private Loans Recent Changes Income-Driven Repayment Parent PLUS Loans Related Resources Nondischargeable Debts Chapter 7 vs Chapter 13 Pro Se Filing Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## IDR Plans vs Bankruptcy [2026]: SAVE, PAYE, IBR Compared with Section 523(a)(8) Discharge Source: https://bankruptcystudentloans.org/income-driven-repayment.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options IDR vs Bankruptcy Income-Driven Repayment vs Bankruptcy IDR: 20-25 year forgiveness with monthly payments. Bankruptcy: immediate discharge. When is each better? Home›Student Loans in Bankruptcy›Income-Driven Repaymentvs Bankruptcy Understanding Income-Driven Repayment Income-driven repayment (IDR) plans cap your monthly federal student loan payment at a percentage of your discretionary income. After 20 to 25 years of qualifying payments, the remaining balance is forgiven. There are several IDR plans available, each with different payment formulas, eligibility rules, and forgiveness timelines. IDR is only available for federal student loans. Private student loans from banks, credit unions, and other private lenders are not eligible for any income-driven plan. If you carry a mix of federal and private student loan debt, IDR addresses only the federal portion. The only path for discharging private loans is through an adversary proceeding in bankruptcy court. IDR Plan Comparison PlanPaymentForgivenessEligibility SAVE (Saving on a Valuable Education)5-10% of discretionary income20-25 yearsAny Direct Loan borrower IBR (Income-Based Repayment)10-15% of discretionary income20-25 yearsMust have partial financial hardship PAYE (Pay As You Earn)10% of discretionary income20 yearsNew borrowers after Oct 2007 ICR (Income-Contingent Repayment)20% of discretionary income25 yearsAny Direct Loan borrower (including PLUS via consolidation) The SAVE plan, which replaced REPAYE, offers the lowest payments for most borrowers. It calculates discretionary income based on 225% of the federal poverty level rather than 150%, which means more of your income is shielded from the payment calculation. For undergraduate-only borrowers, payments are just 5% of discretionary income - potentially cutting monthly payments in half compared to older IDR plans. Head-to-Head Comparison The table below compares IDR and bankruptcy across the factors that matter most to borrowers weighing their options. FactorIDRBankruptcy Monthly payment5-15% of discretionary income$0 after discharge Duration20-25 yearsImmediate Tax on forgivenessMay be taxable after 2025Never taxable Requires hardship proofNoYes (Brunner test) Available for private loansNoYes Credit impactNone7-10 years CertaintyGuaranteedCourt decides The Tax Trap One of the most significant differences between IDR forgiveness and bankruptcy discharge is tax treatment. When the IRS forgives student loan debt through IDR, the forgiven amount may be treated as taxable income. A borrower who has $80,000 forgiven after 25 years could face a tax bill of $15,000 to $25,000 depending on their tax bracket. The American Rescue Plan Act temporarily made IDR forgiveness tax-free through December 31, 2025, but that provision is set to expire. Bankruptcy discharge, by contrast, is never taxable under 26 U.S.C. section 108(a)(1)(A). When Bankruptcy Is Better Bankruptcy may be the stronger option in these situations: You have private student loans, which are not eligible for IDR You have a strong Brunner test case (disability, advanced age, chronic illness) You carry other debts beyond student loans, and bankruptcy can address everything at once IDR forgiveness may create a large tax liability you cannot afford The 2022 DOJ guidance makes it likely the government will support your discharge When IDR Is Better IDR may be the safer path in these circumstances: Your hardship case is weak or uncertain under the Brunner test You qualify for Public Service Loan Forgiveness (PSLF), which offers tax-free forgiveness after just 10 years You want to avoid the credit impact of bankruptcy (7-10 years on your report) Your IDR payment is already $0 per month, meaning the loans cost you nothing in practice while you wait for forgiveness You are close to the end of your IDR repayment period and forgiveness is within reach Can You Do Both? Yes. Enrolling in IDR and later filing for bankruptcy are not mutually exclusive. In fact, having a history of IDR enrollment strengthens your case under Prong 3 of the Brunner test (good-faith effort to repay). Courts view IDR enrollment as evidence that you engaged with the repayment system in good faith before seeking discharge. If IDR is not working for your situation, bankruptcy remains available as a next step. Related The Brunner Test Chapter 13 Strategy How to File Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Student Loans in Bankruptcy: Can You Discharge Them? (2026 Guide) Source: https://bankruptcystudentloans.org/ 🌐 Esta página está disponible en Español Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options Part of the Open Bankruptcy Project - 210+ free domains, 49,000+ pages, $0 hosting The Law Is Changing - 2026 Update Can You Discharge Student Loans in Bankruptcy? The short answer is yes - but it is harder than discharging other debts. You must prove "undue hardship" through an adversary proceeding. Recent DOJ guidance and evolving case law are making this more achievable than at any point in the last 20 years. Yes, but it requires filing an adversary proceeding within your bankruptcy case and proving that repaying the loans would cause 'undue hardship.' This is a higher bar than other debts, which are discharged automatically. Historically, courts used the strict Brunner test, but recent DOJ guidance (2022) and evolving case law have made discharge more attainable. The landscape is changing rapidly in debtors' favor. The Bottom Line Student loans are not automatically discharged in bankruptcy. But they can be discharged if you file a separate lawsuit (adversary proceeding) within your bankruptcy case and prove that repayment would cause undue hardship. The 2022 DOJ guidance has significantly improved outcomes for debtors who pursue this path. If you are already in student loan default, understanding your bankruptcy options is especially critical - default brings wage garnishment, tax refund seizure, and credit destruction that bankruptcy can stop. The Legal Framework: Section 523(a)(8) Under 11 U.S.C. § 523(a)(8), student loans are excepted from discharge in bankruptcy unless the debtor can demonstrate that repaying the loans would impose an "undue hardship" on the debtor and their dependents. This exception applies to: Federal student loans (Direct, FFEL, Perkins) Private student loans (added by BAPCPA in 2005) Parent PLUS loans Consolidation loans that included student debt The key phrase is "undue hardship" - and Congress never defined what it means. That job fell to the courts, which developed two competing tests. The Two Tests for Undue Hardship The Brunner Test (majority of circuits) Established by Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987). Used by the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 9th, 10th, and 11th Circuits. 1 Current inability to pay Based on your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if forced to repay the loans. 2 Persistence of hardship Additional circumstances exist indicating that your financial situation is likely to persist for a significant portion of the repayment period. 3 Good faith effort You have made good faith efforts to repay the loans. This includes applying for income-driven repayment plans, deferments, or forbearances. Totality of the Circumstances Test (8th Circuit and others) Used by the 8th Circuit and gaining traction in other courts. More flexible than Brunner. ∞ Holistic evaluation The court considers all relevant factors - income, expenses, age, health, employment history, dependents, loan amount, and any other circumstances - without requiring the debtor to satisfy rigid prongs. The question is simply whether repayment would constitute undue hardship under the totality of the debtor's circumstances. Which test applies to you? It depends on which federal circuit your bankruptcy court is in. The 8th Circuit (covering Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, South Dakota) uses the more debtor-friendly totality test. Most other circuits use the stricter Brunner test - but even Brunner courts are applying it more flexibly after the 2022 DOJ guidance. The 2022 DOJ Guidance: A Game Changer In November 2022, the Department of Justice and the Department of Education issued joint guidance that fundamentally changed how the federal government handles student loan discharge cases in bankruptcy. What Changed New attestation process: Debtors complete a form detailing their financial circumstances. The DOJ reviews it using a standardized framework. Presumption of discharge: If the analysis supports discharge, the DOJ recommends it to the court instead of fighting it. No more reflexive opposition: Previously, DOJ attorneys opposed almost every student loan discharge. The new guidance directs them to evaluate each case on its merits. Partial discharge: The guidance allows for recommending partial discharge where full discharge isn't warranted. The impact has been immediate. In the first year after the guidance, the DOJ recommended discharge or partial discharge in a significant majority of cases evaluated under the new framework. This does not guarantee the court will grant discharge - the judge still decides - but having the DOJ on your side instead of opposing you is a dramatic shift. How to Pursue Student Loan Discharge Step 1: File bankruptcy (Chapter 7 or Chapter 13) Student loan discharge requires an active bankruptcy case. You can pursue it in either chapter. Chapter 7 is faster overall; Chapter 13 lets you make reduced payments during the plan while the adversary proceeding is pending. Step 2: File an adversary proceeding This is a separate lawsuit within your bankruptcy case, filed as a complaint against your student loan lender(s). Filing fee: $350. You (or your attorney) must prepare a complaint alleging undue hardship under Section 523(a) nondischargeable debts(a)(8). Step 3: Complete the DOJ attestation form (federal loans) If your loans are federal, complete the attestation form from the DOJ guidance. This provides the DOJ with the information it needs to evaluate your case under the new framework. Your attorney should help you with this. Step 4: Litigation or settlement The lender (or DOJ for federal loans) responds. If the DOJ recommends discharge, the court typically grants it. If the lender contests, the case proceeds to trial. Many cases settle with partial discharge or modified repayment terms. Step 5: Court decisión The bankruptcy judge decides whether you've demonstrated undue hardship. The court can grant full discharge, partial discharge, or deny the request. The decisión can be appealed. What Strengthens Your Case FactorImpact Disability or chronic illnessStrongly supports discharge Age (near or past retirement)Supports persistence prong Low income relative to loan balanceSupports inability to pay Applied for income-driven repaymentShows good faith Degree did not lead to employmentSupports hardship Caring for dependentsIncreases expenses, supports hardship Made some payments before filingShows good faith effort High income with manageable debtWeakens case Never applied for IDR plansMay hurt good faith prong Recently incurred the debtCourts may view skeptically Federal vs. Private Student Loans FeatureFederal LoansPrivate Loans Undue hardship required?YesYes (since BAPCPA 2005) DOJ attestation process?Yes - new frameworkNo - lender decides whether to contest Income-driven repayment available?Yes (IBR, PAYE, SAVE)No (lender discretion only) Public Service Loan Forgiveness?Yes (after 10 years)No Typical litigation difficultyModerate (with DOJ guidance)Higher (lenders more likely to contest) Private student loans may be easier to discharge in some cases - particularly if the loan does not meet the statutory definition of a "qualified education loan" (e.g., loans that exceeded the cost of attendance, loans for non-accredited programs, or loans to non-enrolled students). Some courts have found that these loans are not protected by Section 523(a)(8) at all, making them dischargeable like any other unsecured debt. Costs of Pursuing Student Loan Discharge Cost ItemAmount Adversary proceeding filing fee$350 Attorney fees (adversary proceeding)$1,500 - $5,000+ Bankruptcy filing fee (Ch.7 / Ch.13)$338 / $313 Bankruptcy attorney fees$1,000-$5,000 (varies by chapter) Some bankruptcy attorneys include adversary proceeding work in their base fee; most charge separately. Legal aid organizations and law school clinics may handle student loan adversary proceedings at no cost. The DOJ attestation process itself has no fee. Who Should Consider Student Loan Discharge Discharging student loans in bankruptcy is not for everyone, but certain borrowers are in a strong position to succeed under the current legal landscape. Borrowers with disabilities or chronic illness: Medical conditions that limit your ability to work are among the strongest factors courts consider. If your condition is documented and likely to persist, you have a strong case under both the Brunner test and the totality of the circumstances test. Older borrowers approaching retirement: If you are in your 50s or 60s with student debt (including Parent PLUS loans), courts recognize that your earning years are limited. Fixed or declining income strongly supports the persistence prong. Borrowers whose degrees did not lead to employment: If you completed a program that did not improve your earning capacity - or if you never completed the degree at all - this supports your hardship argument. Borrowers with private loans from non-accredited schools: If your private student loans were for a program at a non-accredited institution or exceeded the cost of attendance, those loans may be dischargeable without proving hardship at all. Borrowers who have already tried IDR: A history of income-driven repayment enrollment demonstrates good faith and strengthens your case under the Brunner test. If your IDR payment has been $0 for years, that itself is evidence of your inability to pay. Alternatives to Discharge If discharge through bankruptcy is not feasible or desirable, consider these alternatives for federal student loans: Income-Driven Repayment (IDR): Plans like SAVE, IBR, and PAYE cap monthly payments at a percentage of discretionary income. Payments can be as low as $0/month. Remaining balance is forgiven after 20-25 years. Public Service Loan Forgiveness (PSLF): 120 qualifying payments while working for a government or nonprofit employer. Remaining balance forgiven tax-free. Total and Permanent Disability (TPD) Discharge: If you are totally and permanently disabled, your federal loans can be discharged outside of bankruptcy. Closed School Discharge: If your school closed while you were enrolled or shortly after withdrawal. Borrower Defense to Repayment: If your school engaged in certain misconduct (fraud, misrepresentation). These alternatives and bankruptcy are not mutually exclusive. You can enroll in IDR now and pursue discharge later. In fact, enrolling in IDR before filing for bankruptcy strengthens your case by demonstrating good faith under the Brunner test. Frequently Asked Questions Can you discharge student loans in bankruptcy? Yes, but you must file an adversary proceeding and prove undue hardship. This is a higher bar than other debts. The 2022 DOJ guidance has made it significantly more achievable for federal loans. Private loans can also be discharged but lenders are more likely to contest. What is the Brunner test? A three-prong test requiring proof that: (1) you can't maintain a minimal standard of living while repaying, (2) your situation is likely to persist, and (3) you've made good faith efforts to repay. Used by most federal circuits. The 8th Circuit uses a more flexible "totality of circumstances" test instead. How much does it cost to try to discharge student loans in bankruptcy? The adversary proceeding filing fee is $350. Attorney fees for the adversary proceeding range from $1,500 to $5,000+, on top of your bankruptcy attorney fees. Legal aid may handle it free. The DOJ attestation form has no fee. Should I file Chapter 7 or Chapter 13 to discharge student loans? Either chapter works. Chapter 7 is faster and cheaper overall. Chapter 13 lets you make reduced payments during the 3-5 year plan while the adversary proceeding is pending. Consult an attorney about which chapter best fits your overall financial situation - the student loan issue is just one factor. What happened with the DOJ guidance in 2022? The DOJ issued guidance directing its attorneys to evaluate student loan cases on the merits rather than reflexively opposing discharge. A new attestation form lets debtors present their circumstances. If the DOJ's analysis supports discharge, it recommends it to the court. This has dramatically increased successful outcomes. Can private student loans be discharged? Yes, private student loans require the same undue hardship showing. However, some private loans may not qualify for protection under Section 523(a)(8) if they don't meet the definition of a "qualified education loan" - in those cases, they may be dischargeable like any other unsecured debt without proving hardship. About This Resource This site provides educational information about student loan discharge in bankruptcy. The legal landscape in this area is evolving rapidly. Case law varies significantly by circuit and district. This is not legal advice - consult a bankruptcy attorney experienced in student loan adversary proceedings for guidance on your specific situation. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Browse by State: Student Loan Discharge by State and Circuit State-specific rules, federal court data, and practical guidance for every state and DC. 51 pages total. AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe 462+ Court Documents Freed from PACER We buy federal court records and donate them to RECAP so no one has to pay. Browse the archive → Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → Your Next Questions Real users ask these next - we built the answers. Chapter 7 vs Chapter 13 Which chapter addresses your type of debt? chapter7vs13.org → How Much Does It Cost? Filing fees and attorney costs by chapter howmuchdoesbankruptcycost.com → The Automatic Stay How filing immediately stops collections automaticstay.org → How Discharge Works Which debts get wiped and which survive dischargebar.org → State Bankruptcy Guides Exemptions vary dramatically by state. Find your state's homestead, vehicle, and wildcard exemptions. California · Texas · Florida · New York · Illinois · Ohio Browse All 50 State Guides → 📖 Bankruptcy Glossary -- 61 terms explained Filing in Your State? Exemptions vary dramatically by state. Check what you can protect. Browse Your State's Exemptions → People Also Ask Can I discharge student loans in bankruptcy? What is the Brunner test for student loans? Can private student loans be discharged in bankruptcy? View all questions → Have a Question? Open Bankruptcy Project provides free educational information. We are not a law firm. Nothing on this site constitutes legal advice. For advice about your specific situation, consult a licensed attorney. Select your state... Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming American Samoa Guam Northern Mariana Islands Puerto Rico U.S. Virgin Islands I understand this is educational information, not legal advice. Submit Question Thank you! We typically respond within one business day. You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 Site Map Additional resources on this site Student Loan Discharge Related Resources divorce and student loans --- ## Parent PLUS Loans in Bankruptcy [2026]: 523(a)(8) Discharge and Death/Disability Discharge Compared Source: https://bankruptcystudentloans.org/parent-plus.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options Parent PLUS Loans Parent PLUS Loans in Bankruptcy Parents often have stronger discharge cases: age, no degree benefit, fixed income. Chapter 13 codebtor stay protects the student. Home›Student Loans in Bankruptcy›Parent PLUS Loansin Bankruptcy What Are Parent PLUS Loans? Parent PLUS loans are federal student loans borrowed by parents to help pay for their child's undergraduate education. Unlike other federal student loans, the parent - not the student - is the legal borrower. The parent is fully responsible for repayment, and the student has no legal obligation on the loan unless they are an endorser. Parent PLUS loans carry higher interest rates than Direct Subsidized and Unsubsidized loans. There is no aggregate borrowing limit, which means parents can accumulate enormous balances across multiple children. It is not uncommon for parents to owe $100,000 or more in PLUS loans, especially if they borrowed for two or three children. This uncapped borrowing, combined with the parent's stage of life, creates financial situations that are difficult or impossible to resolve through normal repayment. Why Parents May Have Stronger Discharge Cases Parents pursuing student loan discharge through an adversary proceeding often have a stronger case than student borrowers. Several factors work in the parent's favor under both the Brunner test and the totality of the circumstances test. Age: Parents are typically in their 50s or 60s when PLUS loans enter repayment. They have less time for income growth and may be approaching or already in retirement. This strongly supports the persistence prong of the Brunner test - the court can see that the borrower's earning years are limited. No degree benefit: The parent did not receive the education. The degree benefits the child, not the borrower. This is significant because courts consider whether the education improved the debtor's earning capacity. For parent borrowers, the answer is clearly no. Fixed or declining income: Many parents are on fixed incomes by the time PLUS loans become burdensome. Social Security, pensions, and part-time work do not provide the income growth that courts might expect from younger borrowers. Courts have recognized that expecting a 60-year-old on a fixed income to repay a large student loan balance is unrealistic. Multiple loans: Parents who took PLUS loans for multiple children face aggregate balances that can exceed their annual income several times over. A parent who borrowed $40,000 for each of three children owes $120,000 before interest - a balance that may be sustainable for a high-earning professional but devastating for a middle-income family. Health complications: Older borrowers are more likely to have chronic health conditions that limit their ability to work and increase their expenses. Medical evidence of age-related conditions strengthens the persistence prong considerably. The 2022 DOJ guidance applies to Parent PLUS loans. Parents can complete the DOJ attestation form and have their case evaluated under the new, more favorable framework. When the DOJ recommends discharge, courts typically grant it. Codebtor Stay in Chapter 13 One of the most important strategic considerations for parent PLUS borrowers is the codebtor stay provided by Chapter 13 bankruptcy. Under 11 U.S.C. Section 1301, the codebtor stay protects cosigners and endorsers on consumer debts from collection during the Chapter 13 plan. For Parent PLUS loans, this means that if your child endorsed the loan or is otherwise connected to it, the codebtor stay prevents the lender from attempting to collect from them while your Chapter 13 case is active. This protection lasts for the duration of your 3-to-5-year repayment plan. Chapter 7 does not provide a codebtor stay. If protecting your child from collection is a priority, Chapter 13 may be the better filing strategy - even if your overall financial picture might otherwise favor Chapter 7. The codebtor stay, combined with the ability to file an adversary proceeding during the plan, gives parents meaningful leverage. IDR Options for PLUS Loans Before pursuing bankruptcy, it is important to understand your repayment options. Parent PLUS loans have more limited income-driven repayment access than student-held loans. Income-Contingent Repayment (ICR): The only IDR plan directly available for Parent PLUS loans. Payments are capped at 20% of discretionary income, with forgiveness after 25 years of qualifying payments. ICR payments can still be substantial for middle-income parents. Consolidation pathway: You can consolidate your PLUS loan into a Direct Consolidation Loan, which opens access to other IDR plans like IBR and the SAVE plan. However, consolidation resets your payment count for forgiveness purposes, meaning you start the 20-25 year clock over again. Public Service Loan Forgiveness (PSLF): If you work for a qualifying public service employer (government, nonprofit, tribal organization), PSLF provides tax-free forgiveness after 10 years (120 qualifying payments). This requires consolidation into a Direct Consolidation Loan and enrollment in an IDR plan. PSLF is one of the most powerful tools available to PLUS borrowers who work in public service. The IDR tax trap: Forgiveness through ICR or other IDR plans may be taxable as income after 2025 (when the American Rescue Plan temporary tax exclusion expires). A parent who has $80,000 forgiven could face a tax bill of $15,000 to $25,000. Bankruptcy discharge, by contrast, is never taxable under 26 U.S.C. Section 108(a)(1)(A). Strategy: Chapter 7 vs. Chapter 13 for Parents FactorChapter 7Chapter 13 Codebtor stayNoYes (Section 1301) Case duration3-4 months3-5 years Adversary proceedingAvailableAvailable Reduced payments during caseNoBased on disposable income Protection from garnishmentDuring case only3-5 years via automatic stay The right chapter depends on your priorities. If protecting your child from collection is essential, Chapter 13 is the stronger choice. If speed and simplicity matter more, Chapter 7 with an adversary proceeding gets you to a resolution faster. In either case, the steps for pursuing discharge are the same: File bankruptcy (Chapter 7 or 13) File an adversary proceeding naming each PLUS loan lender as a defendant Complete the DOJ attestation form providing your financial details for the government's evaluation Emphasize parent-specific factors in your complaint and evidence: age, no degree benefit, fixed income, aggregate burden across multiple children, and health conditions Pursue settlement or trial - if the DOJ recommends discharge, the path to resolution is significantly shorter Related The Brunner Test Chapter 13 Strategy How to File chapter13plan.org Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Related Resources Rule 9037 Compliance Guide Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Private Student Loans in Bankruptcy [2026]: McDaniel and Crocker on Qualified Educational Loans Source: https://bankruptcystudentloans.org/private-loans.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options Not All Private Loans Are Equal Discharging Private Student Loans in Bankruptcy Private student loans present a unique opportunity in bankruptcy. While many are subject to the same undue hardship standard as federal loans, some private loans may be dischargeable without any hardship showing at all - if they do not meet the legal definition of a "qualified education loan." Home›Student Loans in Bankruptcy›Discharging Private Student Loansin Bankruptcy Yes. Private student loans can be discharged in bankruptcy, but the path depends on the type of loan. If the loan is a 'qualified education loan' under the tax code, you must prove undue hardship - the same standard as federal loans. However, some private loans do NOT meet the qualified education loan definition, and these may be dischargeable like ordinary unsecured debt without proving hardship. The Bottom Line Not all private student loans are protected by Section 523(a)(8). If your loan does not meet the definition of a "qualified education loan" - because it exceeded the cost of attendance, funded a non-accredited program, or was not for qualified higher education expenses - it may be dischargeable like ordinary credit card debt. How Private Loans Became Protected Before 2005, private student loans were treated like any other unsecured debt in bankruptcy - fully dischargeable, no special showing required. Only government-backed loans had the undue hardship protection. That changed with the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. Congress extended the Section 523(a)(8) exception to "qualified education loans" as defined in the Internal Revenue Code at Section 221(d)(1). This was a major victory for private lenders, who had lobbied heavily for the change. But Congress did not say "all private student loans." It said "qualified education loans." That distinction matters enormously, because not every loan marketed as a "student loan" actually meets the tax code definition. This gap has created a litigation frontier that is producing real results for debtors. What Is a "Qualified Education Loan"? Under IRC Section 221(d)(1), a qualified education loan must satisfy all of the following requirements: The Three Requirements 1 For qualified higher education expenses The loan must fund tuition, fees, room and board, books, supplies, equipment, and other necessary expenses - but only up to the "cost of attendance" as determined by the school. 2 At an eligible educational institution The school must be accredited and eligible to participate in Title IV federal financial aid programs. Non-accredited schools, unaccredited online programs, and many trade schools may not qualify. 3 Does not exceed cost of attendance The loan amount, when combined with all other financial aid, cannot exceed the school's published cost of attendance. Any excess is not a "qualified education loan." If a private loan fails any one of these requirements, it arguably falls outside Section 523(a)(8). That means it can be treated as ordinary unsecured debt - dischargeable in bankruptcy without proving undue hardship. Types of Private Loans That May Be Dischargeable 1. Loans Exceeding Cost of Attendance Private lenders historically approved loan amounts without rigorous verification of the borrower's actual cost of attendance or other financial aid. If your private loan, combined with federal loans, grants, and scholarships, exceeded the school's published cost of attendance, the excess portion was not a qualified education loan. This argument requires documentation: the school's cost of attendance for the relevant year, your total financial aid package, and the private loan amount. Financial aid offices keep these records, and schools are required to report cost of attendance data. Real results: In Crocker v. Navient Solutions (Bankr. S.D. Ind. 2020), the court found that loans exceeding the cost of attendance were not qualified education loans and discharged them without requiring an undue hardship showing. 2. Bar Study and Professional Exam Loans Loans to fund bar exam preparation courses, medical board review courses, CPA exam prep, and similar professional licensing preparation are a growing area of litigation. These loans share key characteristics: They are not for enrollment at an educational institution Bar review companies are not Title IV eligible institutions The expenses are not "qualified higher education expenses" under the tax code Several courts have found that bar study loans fall outside Section 523(a)(8). The argument is straightforward: Barbri, Kaplan, and Themis are not colleges or universities. They are test preparation companies. Loans to pay them are consumer loans, not education loans within the meaning of the statute. Key case: In Campbell v. Citibank (Bankr. E.D.N.Y. 2019), the court held that a bar study loan was not a qualified education loan because the bar review course was not offered by an eligible educational institution, and the loan was not for qualified higher education expenses. 3. Loans for Non-Accredited Programs Private loans taken to attend schools or programs that are not accredited by a recognized accrediting body - or not eligible for Title IV federal financial aid - may fall outside 523(a)(8). This includes: Coding bootcamps (most are not Title IV eligible) Trade schools that lost accreditation Online programs without proper accreditation Foreign institutions not recognized under Title IV Continuing education programs at non-eligible providers The school's Title IV eligibility at the time the loan was disbursed is what matters. If the school was not Title IV eligible when you borrowed, the loan may not be a qualified education loan regardless of what the lender called it. 4. Loans to Non-Students (Parent/Cosigner Loans) Some private lenders issue loans directly to parents or other family members, not to the student. There is an argument that these loans do not meet the "incurred by the debtor" requirement of the tax code definition. While this theory is less tested than the others, it is worth evaluating if you are a cosigner or parent borrower. 5. Direct-to-Consumer "Education" Loans Some fintech lenders and online platforms issue "education loans" that are essentially personal loans marketed for education use. If the lender disbursed funds directly to the borrower (not the school), did not verify enrollment, and did not confirm the amount against cost of attendance, the loan may not qualify for 523(a)(8) protection. Federal vs. Private: Key Differences in Bankruptcy Factor Federal Loans Private Loans 523(a)(8) protection Always applies Only if "qualified education loan" DOJ attestation process Available (2022 guidance) Not available Opponent in adversary proceeding U.S. Department of Justice Private lender's attorneys Settlement likelihood Moderate (DOJ may recommend discharge) Higher (lender bears litigation costs) Discharge without hardship showing Never Possible if not a qualified education loan Collection tools Wage garnishment, tax offset, Social Security offset Lawsuit and judgment required Income-driven repayment Available (IBR, PAYE, SAVE) Not available Typical interest rate 4-7% 6-14%+ The Litigation Landscape Private student loan discharge is an active and evolving area of bankruptcy law. Several trends favor debtors: Lenders Settle More Often Unlike the DOJ, which handles federal loan defense as part of its mission, private lenders face real litigation costs. Defending an adversary proceeding costs the lender $10,000-$50,000 or more in attorney fees. For smaller loan balances, lenders often find it more cost-effective to settle - offering partial discharge, principal reduction, or modified terms - than to litigate to a verdict. Discovery Can Be Powerful In an adversary proceeding against a private lender, you are entitled to discovery. This means you can request the lender's internal records, including: Underwriting documents - did they verify cost of attendance? Disbursement records - was money sent to the school or the borrower? School certification records - did they confirm Title IV eligibility? Internal policies on loan amount caps relative to cost of attendance Many private lenders, especially during the 2005-2015 era, approved loans with minimal verification. Their own records may prove that the loan did not meet the qualified education loan definition. The Navient Factor Navient (formerly Sallie Mae's servicing arm) has been the subject of extensive litigation, regulatory action, and a $1.85 billion settlement with state attorneys general in 2022. Courts have found Navient engaged in predatory lending practices, including approving loans it knew borrowers could not repay and lending amounts that exceeded cost of attendance. These findings can support discharge arguments in individual cases. Strategy Considerations Research Your Loan First Before deciding on a strategy, gather as much information as possible about your specific loan: Get your original loan documents. The promissory note, disclosure statement, and any correspondence at the time of borrowing. Request your financial aid records from your school. You need the cost of attendance for the year(s) in question and your total aid package. Verify the school's accreditation status at the time you borrowed. The Department of Education maintains historical records. Calculate whether total borrowing exceeded cost of attendance. Add up all loans (federal and private) plus grants and scholarships. Compare to the school's published cost of attendance. Determine what the loan funded. Was it for tuition? Living expenses beyond cost of attendance? Bar prep? A non-accredited program? Two Potential Arguments Argument A - Not a qualified education loan: The loan does not meet the IRC 221(d)(1) definition. It should be treated as ordinary unsecured debt and discharged without proving hardship. This is a legal argument decided on the loan documents and facts, often before trial. Argument B - Undue hardship: Even if the loan is a qualified education loan, you can still seek discharge by proving undue hardship under the Brunner test or totality of circumstances. This requires more evidence but remains available for all student loans. The strongest position is to argue both: the loan is not a qualified education loan (and therefore dischargeable outright), but even if it is, the debtor satisfies the undue hardship standard. Courts can address both arguments, and having a fallback strengthens your position. Timing Matters For private loans, there is no equivalent of the DOJ attestation process. You must file an adversary proceeding and litigate (or negotiate) directly with the lender. Key timing considerations: Statute of limitations: The adversary proceeding can be filed at any time during the bankruptcy case, but filing sooner gives more time for discovery and negotiation. Lender's response: Private lenders typically have 30 days to answer the complaint. Many hire outside counsel, which increases their costs and settlement motivation. Discovery period: Expect 3-6 months for discovery. This is where the qualified education loan argument is often won or lost. Common Private Lenders and Discharge History Lender Typical Loan Types Discharge Track Record Navient / Sallie Mae Undergraduate, graduate, consolidation Multiple discharge victories; $1.85B AG settlement SoFi / Earnest Refinance, direct-to-consumer Refinance loans may lose QEL status; emerging litigation Discover Undergraduate, graduate Some excess-of-COA arguments succeeding Wells Fargo (exited market) Legacy undergraduate/graduate No longer originating; legacy loans still in collections Citizens Bank Undergraduate, graduate, refinance Limited published decisions College Ave Undergraduate, graduate, parent Newer lender; minimal discharge litigation so far What to Expect: Cost and Timeline An adversary proceeding against a private lender typically follows this timeline: Filing: $350 filing fee + attorney preparation of complaint Service and answer: 30-60 days Discovery: 3-6 months (document requests, depositions) Settlement discussions: Often concurrent with discovery Summary judgment: If the "not a QEL" argument is strong, you may win without trial Trial: If needed, typically a bench trial (no jury) lasting 1-3 days Total timeline: 6-18 months from filing to resolution Attorney fees for private loan discharge cases range from $2,000 to $7,000, depending on complexity and whether the case goes to trial. Some attorneys work on contingency or reduced fees for strong cases. Legal aid organizations may handle these cases for qualifying debtors. Frequently Asked Questions Can private student loans be discharged in bankruptcy? Yes. All private student loans can potentially be discharged through the undue hardship process. Additionally, private loans that do not meet the definition of a "qualified education loan" under the tax code may be dischargeable like ordinary unsecured debt without proving hardship at all. How do I know if my loan is a "qualified education loan"? Check three things: (1) Was the loan for tuition, fees, room and board, or other qualified expenses at an accredited school? (2) Was the school eligible for Title IV federal financial aid? (3) Did the loan, combined with all other aid, stay within the school's published cost of attendance? If the answer to any of these is no, the loan may not be a qualified education loan. Are refinanced student loans still protected by 523(a)(8)? This is an evolving question. When you refinance a student loan through a private lender like SoFi, the new loan pays off the old one. There is an argument that the refinance loan is a new consumer loan, not a qualified education loan, because the refinance itself is not "for qualified higher education expenses." Courts have not uniformly resolved this question, but it is being litigated. Can I discharge just the private loans and keep the federal ones? Yes. The adversary proceeding is filed against specific creditors. You can file against your private lender(s) while keeping federal loans on an income-driven repayment plan. This is often the most strategic approach - federal loans have built-in protections (IDR, PSLF, forbearance), while private loans have none. Will the private lender fight the discharge? It depends on the amount and the strength of your case. For smaller balances (under $20,000), many lenders find litigation costs prohibitive and are willing to settle. For larger balances, expect vigorous defense. However, even when lenders fight, the discovery process can reveal underwriting failures that strengthen your position. What about bar study loans specifically? Bar study loans are among the strongest candidates for discharge without proving hardship. Bar review companies like Barbri and Kaplan are not Title IV eligible institutions, and bar exam preparation is not enrollment at an educational institution. Several courts have found these loans fall outside 523(a)(8), though the law is not yet settled in every circuit. Next Steps: Evaluating Your Private Loans If you have private student loans and are considering bankruptcy, take these steps to evaluate your options: Identify each private loan separately. Check your credit report and contact each servicer to get current balances, interest rates, and original loan terms. Request your financial aid history. Contact your school's financial aid office for cost of attendance figures and your complete aid package for each year you attended. Verify your school's accreditation status. The Department of Education's database at ope.ed.gov/dapip confirms Title IV eligibility. Check the status for the specific dates you attended. Compare total borrowing to cost of attendance. If your total loans (federal plus private) plus grants and scholarships exceeded the published cost of attendance, the excess private loan amount may not be a qualified education loan. Consult a bankruptcy attorney experienced in student loan litigation. The qualified education loan analysis is fact-intensive and jurisdiction-dependent. An experienced attorney can evaluate whether your loans are vulnerable to the "not a QEL" argument and assess your undue hardship case as a backup. You may have a stronger case than you think. Many borrowers assume their private student loans are permanently nondischargeable. In reality, the qualified education loan definition is narrower than most people realize, and private lenders are often willing to settle rather than bear the cost of litigation. Related Resources The Brunner Test - the undue hardship standard if your loan is a qualified education loan How to File an Adversary Proceeding - step-by-step guide to the discharge process Recent Changes - DOJ guidance and congressional proposals Chapter 13 and Student Loans - how Chapter 13 affects private loan strategy Section 523(a) Explained - the full discharge exception framework Part of the Open Bankruptcy Project Related Guides Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options 1099-C Canceled Debt Guide Related Resources Rule 9037 Compliance Guide Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Open Bankruptcy Project -- openbankruptcyproject.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Recent Student Loan Bankruptcy Changes [2026]: DOJ/ED Attestation, SAVE Plan, and Circuit Updates Source: https://bankruptcystudentloans.org/recent-changes.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options 2024-2026 Updates Student Loan Bankruptcy: What Changed DOJ guidance, evolving case law, and proposed legislation are making discharge more achievable than at any point in decades. Home›Student Loans in Bankruptcy›Student Loan Bankruptcy:What Changed 2022 DOJ Guidance - The Biggest Change In November 2022, the Department of Justice and the Department of Education jointly issued new guidance fundamentally changing how the federal government evaluates student loan discharge requests in bankruptcy. Before this guidance, the DOJ reflexively opposed nearly every student loan discharge petition, forcing borrowers into expensive and often unsuccessful litigation. The new framework replaces that blanket opposition with a merits-based review process. New attestation form: Borrowers complete a standardized form that the DOJ uses to evaluate their financial situation against the Brunner test or applicable circuit standard Merits-based review: The DOJ now evaluates each case on the facts rather than opposing every petition as a matter of policy Government may support discharge: When the evidence warrants it, the DOJ recommends full or partial discharge to the bankruptcy court Partial discharge: In cases where full discharge is not appropriate, the DOJ may recommend reducing the loan balance, lowering the interest rate, or discharging a portion of the debt Impact: The DOJ recommended discharge in a significant majority of evaluated cases during the first year of the new guidance. When the federal government supports your discharge petition, courts are far more likely to grant relief. This single policy change has made student loan discharge more achievable than at any point since the Brunner test was adopted. FRESH START Act The FRESH START Through Bankruptcy Act is proposed bipartisan legislation that would eliminate the undue hardship requirement for student loans that are more than 10 years old. Under this bill, borrowers who have carried student loan debt for at least a decade would be able to discharge those loans in bankruptcy using the same standard applied to credit cards, medical bills, and other unsecured debts. The Act has been introduced with bipartisan support in both the Senate and the House. Co-sponsors include members from both parties, reflecting growing recognition that the current student loan exception in bankruptcy law has become unworkable. As of March 2026, the bill has not been enacted into law, but it continues to receive attention and has been reintroduced in successive congressional sessions. Even without the FRESH START Act, the combination of the 2022 DOJ guidance and evolving case law has substantially improved the landscape for borrowers seeking discharge. If the Act does pass, it would make the process dramatically simpler for anyone with loans older than 10 years. Evolving Case Law Beyond the DOJ guidance and proposed legislation, federal courts themselves are shifting how they apply the Brunner test and undue hardship standard. Several significant developments have emerged in recent years: Courts rejecting rigid Brunner interpretations: Multiple courts have moved away from the "certainty of hopelessness" standard, instead applying a "more likely than not" analysis of whether the borrower can repay Higher settlement rates: With the DOJ now supporting discharge in qualifying cases, lenders and servicers are settling more adversary proceedings rather than litigating through trial Homaidan decision: The Second Circuit's ruling in Homaidan v. Sallie Mae opened a new path for discharging private student loans by clarifying that not all private education loans qualify for the section 523(a)(8) exception Growing judicial and academic criticism: Federal judges and bankruptcy scholars have publicly called for reform of the undue hardship standard, adding pressure on Congress to act Totality of circumstances test gaining ground: The Eighth Circuit's totality of circumstances approach, which is more flexible than Brunner, has been adopted or cited favorably by courts outside its original jurisdiction These changes collectively mean that borrowers filing adversary proceedings today face a significantly more favorable environment than borrowers who filed even five years ago. The barriers are still real, but they are lower than they have been in decades. Timeline of Key Changes The landscape for student loan discharge in bankruptcy has shifted significantly over the past several years. Here is a timeline of the most important developments. DateEventImpact 2005BAPCPA extends 523(a)(8) to private loansPrivate student loans now require undue hardship showing 2020Homaidan v. Sallie Mae (2d Cir.)Clarifies that some private loans are not protected by 523(a)(8) Nov 2022DOJ/DOE joint guidance issuedReplaces blanket opposition with merits-based review 2023SAVE plan replaces REPAYELower IDR payments, shorter forgiveness for small balances 2023-2024FRESH START Act reintroducedWould eliminate hardship requirement for loans 10+ years old (not yet enacted) 2024-2025Courts continue softening Brunner applicationMore partial and full discharges granted nationwide Dec 2025ARP IDR tax exclusion set to expireIDR forgiveness may become taxable; bankruptcy remains tax-free What This Means for Borrowers in 2026 If you are considering student loan discharge in 2026, you are in a better position than borrowers at any point in the previous three decades. The combination of the DOJ guidance, evolving case law, and growing judicial criticism of rigid Brunner applications has created a window of opportunity. However, the landscape remains uncertain. The DOJ guidance is a policy directive, not a statute - it could be changed by a future administration. The FRESH START Act has bipartisan support but has not been enacted. And the SAVE plan faces ongoing legal challenges that could affect its availability. The most important takeaway: do not assume your student loans cannot be discharged. If you are struggling with student loan debt and are considering bankruptcy, consult with an attorney experienced in student loan adversary proceedings. The odds of success are better than they have been in decades. For federal loan borrowers: Complete the DOJ attestation form as part of your adversary proceeding. If the DOJ recommends discharge, courts typically grant it. This single step has transformed the success rate for qualifying borrowers. Related The Brunner Test IDR vs Bankruptcy Private Loans Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Student Loan Repayment vs Bankruptcy Discharge - Comparison [2026] Source: https://bankruptcystudentloans.org/repayment-vs-discharge.html Esta página está disponible en Español Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Compare Paths Recent Changes Every Path Compared Student Loan Repayment vs Bankruptcy Discharge IDR, PSLF, standard repayment, or bankruptcy - four paths to deal with student loans. This guide compares them head to head so you can see which one actually works for your situation. Home›Student Loans in Bankruptcy›Repayment vs Discharge IDR plans cap your payment at 10-20% of discretionary income for 20-25 years, after which the remaining balance is forgiven (but may be taxable). Bankruptcy discharge eliminates the debt completely with no tax consequences, but requires proving undue hardship in an adversary proceeding. For borrowers who clearly cannot repay, bankruptcy is faster and more complete. For those with moderate income and large balances, IDR provides a slower path to eventual forgiveness. IDR (Income-Driven Repayment) vs Bankruptcy Discharge Income-driven repayment plans cap your monthly payment based on income and family size. After 20-25 years of payments, the remaining balance is forgiven. Bankruptcy discharge eliminates the debt entirely through an adversary proceeding. FactorIDR Plans (SAVE/IBR/PAYE/ICR)Bankruptcy Discharge Timeline to Relief20-25 years of qualifying paymentsAdversary proceeding resolved in months Monthly Payment10-20% of discretionary income$0 after discharge Total PaidPotentially hundreds of thousands over 20+ years$350 adversary fee + attorney costs Tax ConsequencesForgiven balance may be taxable as income (after 2025 exemption expires)No tax on discharged debt DifficultyApply online; automatic qualificationMust prove undue hardship (Brunner test or totality of circumstances) Covers Private LoansNo - federal loans onlyYes - all student loans Credit ImpactPositive if payments made on timeBankruptcy on report 7-10 years Risk of LossLow if you maintain enrollmentCourt may deny discharge; partial discharge possible Key insight: IDR is a 20-25 year commitment that may result in a "tax bomb" when forgiveness arrives. Bankruptcy is harder to obtain but eliminates the debt completely and immediately. For borrowers with no realistic ability to repay, the 2022 DOJ guidance has made bankruptcy discharge significantly more attainable. PSLF vs Bankruptcy Discharge Public Service Loan Forgiveness forgives the remaining federal loan balance after 120 qualifying payments (10 years) while employed by a qualifying public service or nonprofit employer. The forgiveness is tax-free. FactorPSLFBankruptcy Discharge Timeline10 years (120 payments)Months (adversary proceeding) Tax-FreeYesYes Employment RequirementMust work for qualifying employer entire 10 yearsNone Loan TypesDirect Loans only (must consolidate others)All student loans including private Payment Requirement120 qualifying on-time paymentsNo ongoing payments required CertaintyHistorically low approval rate (improving since 2022 waiver)Depends on court; 2022 DOJ guidance helps Bottom line: PSLF is the best path if you have federal Direct Loans AND plan to stay in public service for 10+ years. If you have left public service, have private loans, or cannot maintain qualifying payments, bankruptcy may be the better option. The two are not mutually exclusive - you can pursue PSLF while keeping bankruptcy as a backup. Private vs Federal Student Loans in Bankruptcy The treatment of student loans in bankruptcy differs significantly between federal and private loans - not in legal standard, but in practical options outside bankruptcy. FactorFederal Student LoansPrivate Student Loans Bankruptcy StandardUndue hardship (same)Undue hardship (same) IDR AvailableYesNo PSLF AvailableYes (Direct Loans)No Deferment/ForbearanceMultiple optionsLimited or none 2022 DOJ Guidance AppliesYesNo (lender litigates independently) Bankruptcy Argument StrengthHarder - courts note IDR availabilityStronger - no alternatives available Discharged AmountFull or partialFull or partial (some courts more willing) Important: Because private loans lack IDR, PSLF, and other federal safety nets, bankruptcy is often the ONLY path to relief. Some courts have recognized this and been more willing to discharge private loans, particularly loans that exceeded the cost of attendance or were issued by now-defunct institutions. The Brunner Test Explained Most courts use the Brunner v. New York State Higher Education Services Corp. (1987) test to evaluate undue hardship. You must prove all three prongs: ProngWhat You Must ProveWhat Courts Look For 1. Minimal Standard of LivingYou cannot maintain a minimal standard of living for yourself and dependents if forced to repayCurrent income vs. expenses, medical conditions, family size, cost of living in your area 2. PersistenceYour financial situation is likely to persist for a significant portion of the repayment periodAge, disability, job prospects, education, work history, maximized income potential 3. Good FaithYou have made good-faith efforts to repay the loansPayment history, attempts to find employment, explored IDR options, contacted servicer The 8th Circuit (covering Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, South Dakota) uses a more flexible "totality of the circumstances" test that weighs all factors holistically rather than requiring strict proof of each prong. The 2022 DOJ guidance directs government attorneys to apply a more reasonable analysis rather than reflexively opposing discharge. Check Your Bankruptcy Eligibility The discharge eligibility screener checks waiting periods; consult an attorney about student loan adversary proceedings. Free Eligibility Screener Related Guides The Brunner Test: Full Guide Proving Undue Hardship Private Student Loans in Bankruptcy Income-Driven Repayment Plans Filing an Adversary Proceeding Recent Changes in Student Loan Discharge Law Chapter 7 vs 13 Comparison Table Student Loan Forgiveness Programs Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Student Loan Discharge in Bankruptcy: Brunner Test and New DOJ Guidance [2026] - Student Loans Source: https://bankruptcystudentloans.org/student-loan-discharge.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Discharge Guide Chapter 13 Private Loans Recent Changes Comprehensive Guide - 2026 Student Loan Discharge in Bankruptcy: The Brunner Test and Beyond The legal landscape for student loan discharge is changing faster than at any point in decades. The Brunner test remains the standard in most circuits, but the 2022 DOJ guidance and recent case law are fundamentally shifting outcomes. Here is how it actually works. Home›Student Loans in Bankruptcy›Student Loan Discharge The Brunner test, established in Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987), requires debtors to prove three things: (1) they cannot maintain a minimal standard of living if forced to repay the loans based on current income and expenses, (2) additional circumstances exist indicating this state of affairs is likely to persist for a significant portion of the repayment period, and (3) they have made good-faith efforts to repay the loans. All three prongs must be satisfied. The test is used by most federal circuit courts, though some circuits use a more flexible 'totality of the circumstances' approach. The Bottom Line Student loans can be discharged in bankruptcy, but you must file a separate adversary proceeding and prove undue hardship under 11 U.S.C. Section 523(a)(8). The Brunner test sets the standard in most circuits. The November 2022 DOJ guidance has made the federal government far more willing to agree to discharge. If you have federal student loans and genuine financial hardship, the odds are better than they have been in a generation. The Legal Foundation: Section 523(a)(8) The Bankruptcy Code does not make student loans nondischargeable - it makes them harder to discharge. The distinction matters. 11 U.S.C. Section 523(a)(8) - A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt for an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship, or stipend, unless excepting such debt from discharge would impose an undue hardship on the debtor and the debtor's dependents. The critical phrase is "unless excepting such debt from discharge would impose an undue hardship." Congress did not define "undue hardship" - leaving it to the courts. Two main tests have emerged. The Brunner Test: Three Prongs The Brunner test comes from Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987). It is the dominant standard, used by the majority of federal circuit courts. The Three Prongs of Brunner 1 Minimal Standard of Living Based on your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if forced to repay the loans. Courts look at actual income vs. actual necessary expenses - housing, food, utilities, medical care, transportation. 2 Persistence of Circumstances Additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period. Courts consider age, health conditions, disability, education level, employment history, and the remaining repayment term. This is often the hardest prong - courts historically required something approaching a "certainty of hopelessness." 3 Good Faith Effort You have made good-faith efforts to repay the loans. This does not require years of payments. Courts look at whether you explored income-driven repayment (IDR) plans, made payments when able, communicated with servicers, and generally did not ignore the obligation. Applying for and being denied payment reduction counts as good faith. Criticism of the Brunner Test The Brunner test has been widely criticized as too rigid. The second prong - requiring proof that financial hardship will persist - has been interpreted by some courts to require near-total hopelessness. Critics argue this goes far beyond what Congress intended when it used the phrase "undue hardship." Even the judge who decided Brunner, Judge Keenan, applied it to deny discharge in a case where the debtor filed bankruptcy just months after graduating and before even beginning to look for work. The facts of Brunner itself were extreme, but the test it created has been applied far more broadly than the original case warranted. The Alternative: Totality of the Circumstances The First and Eighth Circuits reject the Brunner test in favor of a "totality of the circumstances" approach. Under this standard, courts consider all relevant factors holistically rather than requiring the debtor to satisfy three rigid prongs. Factors courts consider include: The debtor's past, present, and reasonably reliable future financial resources The debtor's and dependents' reasonably necessary living expenses Any other relevant facts and circumstances The debtor's age, health, and number of dependents Whether the debtor maximized income potential Whether the debtor's expenses are reasonable Whether the debtor's financial difficulties are likely to continue This test is generally considered more debtor-friendly because it allows the court to weigh the complete picture rather than requiring rigid satisfaction of each prong. The 2022 DOJ Guidance: A Sea Change In November 2022, the Department of Justice and Department of Education issued joint guidance that fundamentally changed how the federal government handles student loan discharge cases. What Changed Attestation form: Debtors can complete a standardized form describing their financial situation, submitted through their bankruptcy case. DOJ analysis: Rather than automatically opposing discharge, DOJ attorneys now evaluate the debtor's circumstances under a practical framework. Recommendation to the court: If the DOJ's analysis supports discharge, it recommends discharge to the court instead of fighting the debtor. Faster resolution: Cases that previously required full adversary litigation can now be resolved by agreement, saving time and money for everyone. This matters because: The federal government is the creditor in the vast majority of student loan bankruptcy cases. When the DOJ agrees to discharge, the court almost always grants it. The DOJ's shift from adversary to evaluator has transformed outcomes. The DOJ's Evaluation Factors The DOJ guidance evaluates undue hardship by looking at: Whether the debtor's income is at or below the poverty level Whether the debtor has a disability or chronic health condition Age of the debtor and years until retirement Whether the debtor is on an income-driven repayment plan with a $0 payment Length of time in repayment and total amounts already paid Whether the debtor obtained a degree or benefited from the education The Adversary Proceeding Process Unlike other debts that are automatically discharged, student loan discharge requires filing a separate lawsuit within your bankruptcy case. Step by Step File your bankruptcy case (Chapter 7 or Chapter 13) in the normal way. File an adversary proceeding complaint against each student loan holder/servicer. This is a separate filing with its own case number. Filing fee: approximately $350. Serve the complaint on the defendant (the loan holder or DOE). Complete the DOJ attestation form (for federal loans) and submit it through your case. Wait for the DOJ's analysis. If they support discharge, the case may resolve by stipulation. If contested: Discovery, potentially a trial before the bankruptcy judge. Court enters judgment - full discharge, partial discharge, or denial. Timing Considerations You can file the adversary proceeding at any point during your bankruptcy case. In Chapter 7, most practitioners file it early. In Chapter 13, some wait until the end of the plan to demonstrate years of good-faith repayment effort. There is no specific deadline, but the adversary proceeding must be filed while the bankruptcy case is open. Which Test Applies? Circuit-by-Circuit CircuitTest UsedNotes 1st CircuitTotality of CircumstancesMore flexible standard 2nd CircuitBrunnerOrigin of the Brunner test; recent signals of reconsideration 3rd CircuitBrunner 4th CircuitBrunner 5th CircuitBrunner 6th CircuitBrunner 7th CircuitBrunner 8th CircuitTotality of CircumstancesMore flexible standard 9th CircuitBrunner 10th CircuitNot formally adoptedVaries by district 11th CircuitBrunner Partial Discharge and Other Outcomes Courts are not limited to all-or-nothing outcomes. Available relief includes: Full discharge: All student loan debt eliminated. Partial discharge: Court reduces the total amount owed. Increasingly common. Discharge of some loans: If you have multiple loans, the court may discharge some but not others based on the circumstances of each. Modified repayment terms: Some courts have reduced interest rates or modified repayment terms as an alternative to discharge. Settlement: The creditor (often the DOJ for federal loans) may agree to a reduced payoff amount. Private Student Loans The DOJ guidance applies only to federal student loans. Private student loans are also subject to the undue hardship standard under Section 523(a)(8), but the creditor is a private lender rather than the federal government. Key differences for private loans: No DOJ attestation process - you must litigate directly against the lender. Private lenders may be more aggressive in opposing discharge. However, private lenders also have smaller legal budgets and may settle to avoid litigation costs. The same undue hardship standard applies - Brunner or totality of circumstances, depending on your circuit. Practical Advice Building Your Case for Discharge Apply for income-driven repayment (IDR). If your payment is $0 or nominal, this strongly supports Prong 1 (minimal standard of living) and Prong 3 (good faith). Document everything. Medical records, disability determinations, unemployment records, rejection letters - all support Prong 2 (persistence). Do not ignore the loans. Communicate with servicers, apply for deferment or forbearance when needed, and explore repayment options. This builds the good-faith record. Consider timing. The longer the gap between when you took the loans and when you file, the stronger your case. Filing decades after graduation with a history of unsuccessful repayment is much stronger than filing immediately after school. Get legal help. The adversary proceeding is a real lawsuit. Legal aid organizations, law school clinics, and some bankruptcy attorneys handle these cases pro bono or on a contingency basis. Frequently Asked Questions What is the Brunner test for student loan discharge? The Brunner test (from Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987)) requires proving three things: (1) you cannot maintain a minimal standard of living while repaying, (2) your situation is likely to persist, and (3) you have made good-faith repayment efforts. Most circuits use this test. How did the 2022 DOJ guidance change things? The DOJ now evaluates student loan discharge requests through an attestation form rather than automatically opposing discharge. When their analysis supports discharge, they recommend it to the court. This has significantly increased successful outcomes for federal loan borrowers. Do I need to file a separate lawsuit to discharge student loans? Yes. You must file an adversary proceeding (a separate lawsuit within your bankruptcy case) against each student loan holder. This has its own filing fee (~$350) and follows a litigation process including potential discovery and trial. Can I get a partial discharge? Yes. Courts can grant full discharge, partial discharge (reducing the total owed), discharge of some loans but not others, or modified repayment terms. Partial discharge has become more common in recent years. Which circuits use the Brunner test? Most circuits use Brunner: 2nd, 3rd, 4th, 5th, 6th, 7th, 9th, and 11th. The 1st and 8th Circuits use the more flexible "totality of the circumstances" test. The 10th Circuit has not formally adopted either test. Related Resources Brunner Test Deep Dive - Detailed analysis of each prong Undue Hardship Standard - How courts define undue hardship 523a.org - All exceptions to discharge under Section 523(a) howtofilebankruptcy.org - Step-by-step bankruptcy filing guide Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 This site provides general information, not legal advice. Consult a qualified attorney for your specific situation. --- ## Undue Hardship Standard [2026]: Brunner, Totality of Circumstances, and DOJ/ED Attestation Source: https://bankruptcystudentloans.org/undue-hardship.html Skip to main content bankruptcystudentloans.org ☰ Home Brunner Test Undue Hardship Chapter 13 Private Loans Recent Changes Options Legal Standard Undue Hardship: The Standard for Discharge Congress never defined "undue hardship." Courts developed competing tests. The landscape is shifting in debtors' favor. Home›Student Loans in Bankruptcy›Undue Hardship:The Standard for Discharge Section 523(a)(8): The Statutory Foundation Under 11 U.S.C. Section 523(a)(8), student loans are excepted from the general bankruptcy discharge unless repaying them would impose "undue hardship" on you and your dependents. Unlike credit card debt, medical bills, or personal loans - which are discharged automatically in bankruptcy - student loans require you to take an extra step. You must file an adversary proceeding, which is a separate lawsuit within your bankruptcy case, and present evidence that satisfies the undue hardship standard. Congress added the student loan exception to the Bankruptcy Code in stages. Originally, only government-backed loans were protected. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) extended the exception to "qualified education loans," bringing most private student loans under the same umbrella. Congress chose the phrase "undue hardship" but never defined what it means - leaving that task to the courts. Two Competing Tests Because Congress did not define "undue hardship," federal courts developed their own frameworks. Two primary tests have emerged, and which one applies to you depends on the circuit where your bankruptcy case is filed. The Brunner Test (Majority of Circuits) The Brunner test, established by the Second Circuit in 1987, requires you to prove three separate elements: (1) you cannot maintain a minimal standard of living while repaying the loans based on current income and expenses, (2) additional circumstances exist indicating that your financial situation is likely to persist for a significant portion of the repayment period, and (3) you have made good-faith efforts to repay. The Brunner test is used by the 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 9th, 10th, and 11th Circuits. Totality of the Circumstances Test (8th Circuit) The Eighth Circuit (covering Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota) uses a more flexible approach. Instead of requiring you to satisfy rigid prongs, the court considers all relevant facts about your financial situation holistically. This includes your income, expenses, age, health conditions, number of dependents, employment history, loan balance, and any other circumstances that bear on whether repayment would be an undue hardship. Courts applying this test are generally considered more debtor-friendly. FactorBrunner TestTotality Test Structure3 separate prongs (all required)Holistic evaluation Used byMost circuits (1st-7th, 9th-11th)8th Circuit RigidityHistorically very rigidFlexible by design Partial dischargeAvailable in many courtsAvailable Recent trendSoftening in applicationConsistently debtor-friendly What Courts Consider Regardless of which test applies, courts look at a similar set of factors when evaluating undue hardship. The more of these factors that weigh in your favor, the stronger your case. Current income and expenses: Can you cover basic needs and still make loan payments? Courts look at your actual budget, not just gross income. Employment history and prospects: Have you been steadily employed? Are your earnings likely to increase, or have you maximized your earning capacity? Health, age, and disability: Chronic illness, permanent disability, advanced age, and mental health conditions all support hardship. Medical documentation is critical. Dependents: Children, elderly parents, or disabled family members who depend on you increase your necessary expenses and strengthen your case. Loan balance relative to income: A $150,000 loan balance on a $35,000 salary paints a very different picture than $20,000 on a $75,000 salary. Efforts to repay: Enrollment in income-driven repayment, deferments, forbearances, and any payments you have made all demonstrate good faith. Whether the degree improved earning capacity: If you never completed the degree, or the degree has not led to employment in the field, courts view this favorably. Loan type: Private student loans that do not meet the "qualified education loan" definition may be dischargeable without any hardship showing at all. The Trend Toward More Discharges Since the 2022 DOJ guidance, courts are applying the undue hardship standard more flexibly than at any point in the last two decades. The government now evaluates each case on its merits rather than reflexively opposing every discharge petition. Success rates have increased significantly. The DOJ created an internal "attestation form" process where borrowers provide financial information that the government uses to decide whether to consent to discharge, negotiate partial discharge, or oppose. This is a major shift from the pre-2022 era when the government opposed virtually every student loan discharge case regardless of the borrower's circumstances. Several circuits have also moved away from a rigid application of the Brunner test. The "certainty of hopelessness" standard - which some courts used to require - has been widely criticized and is losing ground. Many courts now apply a "more likely than not" analysis, asking whether it is more likely than not that the debtor's financial difficulties will persist. This is a far more reasonable standard that recognizes real-world circumstances. Some courts now grant partial discharge - eliminating a portion of the loan balance, reducing the interest rate, or modifying repayment terms. This middle-ground approach reflects a growing recognition that undue hardship exists on a spectrum. The Section 523(a)(8) exception is no longer the absolute bar it once was. Do not assume discharge is impossible. The landscape has changed dramatically. If you are struggling with student loan debt, consult an attorney experienced in student loan adversary proceedings. Many legal aid organizations and law school clinics handle these cases at no cost. Building Your Undue Hardship Case If you are considering filing for student loan discharge, start gathering evidence now. The strength of your case depends on documentation. Tax returns: At least 3 years showing income levels and trajectory Pay stubs: Current proof of earnings Monthly budget: Detailed breakdown with receipts for each category Medical records: Documentation of any chronic conditions, disabilities, or mental health issues Employment records: History of job searches, applications, layoffs, and underemployment Loan servicer correspondence: Proof that you applied for IDR, requested forbearance, or communicated with your servicer Cost of attendance records: If pursuing a private loan discharge, documentation that the loan exceeded the school's cost of attendance Timing matters. You can file an adversary proceeding during an active Chapter 7 or Chapter 13 case. Some attorneys recommend filing early in the case to take advantage of the automatic stay protection while the proceeding is pending. Related The Brunner Test Recent Changes How to File 523a.org Last updated: March 2026. Not legal advice. Part of the Open Bankruptcy Project Related Guides Credit Card Debt in Bankruptcy Medical Debt Rights Guide Student Loan Default Guide Student Loan Forgiveness Options Stay updated on new datasets and research findings No spam. No marketing. Just data. Subscribe Free, open-source bankruptcy transparency. No ads. No affiliate links. Supported by donations. ♥ Donate Further Reading & Resources Authority sources for deeper research on student loans and bankruptcy: 11 U.S.C. Section 523(a)(8) Cornell LII - student loan exception Federal Student Aid Dept. of Education DOJ Student Loan Guidance 2022 guidance on undue hardship CFPB Student Loan Resources CFPB tools Find Free Legal Aid LSC legal aid finder NCLC Student Loans National Consumer Law Center Brunner Test Research Google Scholar Related Guides The Brunner Test Explained The undue hardship test for student loans brunnertest.org → Nondischargeable Debts Under 523(a) Which debts survive bankruptcy and why 523a.org → Section 524 Discharge Injunction Free bankruptcy information guide 524injunction.com → When Bankruptcy Is Denied Why bankruptcy cases get denied bankruptcydenied.com → You May Also Find Helpful 1099-C Cancellation of Debt Tax Guide -- 1099cdebt.com Bankruptcy Means Test by State -- bankruptcymeanstest.org Student Loan Forgiveness Programs -- studentloanforgive.org Part of the Bankruptcy Transparency Network Real information, no strings. Discharge Screener Open Bankruptcy Project Ch.7 vs Ch.13 Bankruptcy Cost Automatic Stay 341 Meeting Exemptions by State Means Test File Without a Lawyer Rebuild Credit 1099cdebt.com Free bankruptcy education for the public interest. Not legal advice. If you need legal help, contact a licensed attorney in your state. A project of the Open Bankruptcy Project, a 501(c)(3) nonprofit (EIN 41-5159631). Privacy | Terms ♥ Donate Our research was cited by the federal judiciary as Suggestion 26-BK-3 --- ## Privacy Policy - bankruptcystudentloans.org Source: https://bankruptcystudentloans.org/privacy.html bankruptcystudentloans.org Home Privacy Privacy Policy How we handle your data. Short version: we don't sell it, share it, or use it for advertising. Data We Collect We use Google Analytics (GA4) to measure aggregate site traffic. This includes page views, session duration, approximate geographic region (country and city level), and device type. 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McMahon, and TPD - Student Loan Discharge Pathways That Aren't Bankruptcy Source: https://bankruptcystudentloans.org/borrower-defense.html Borrower Defense, Sweet v. McMahon, and TPD Three federal pathways that discharge student loans without a bankruptcy filing - and how each interacts with a bankruptcy discharge under 11 U.S.C. section 523(a)(8) ← Back to bankruptcystudentloans.org Home›bankruptcystudentloans.org›Borrower Defense, Sweet, and TPD Borrower Defense to Repayment (BDR) is a federal regulation at 34 CFR 685.206(c) and 34 CFR 685.222 that allows federal student loan borrowers to discharge their loans if the school engaged in misconduct - misrepresentation, breach of contract, or other actionable conduct that induced them to take the loans. It is an administrative process through the Department of Education, not a court proceeding. Three Federal Pathways, Not One Most federal student loan borrowers who assume bankruptcy is their only discharge option are wrong. Three federal-regulatory pathways discharge student loans outside of bankruptcy - each with different eligibility, different timelines, and different interactions with a later bankruptcy filing. All three are administered by the Department of Education, not the bankruptcy court. All three were dramatically expanded in the 2022-2024 rulemaking cycle. And all three remain live and under-used because the application processes are obscure and the media coverage has focused overwhelmingly on the separate Public Service Loan Forgiveness (PSLF) and income-driven-repayment (IDR) storylines. This page covers the three discharge pathways in order of breadth - the one that covers the most borrowers first, the narrowest last - and then explains how each overlaps with a bankruptcy adversary proceeding under 11 U.S.C. § 523(a)(8). Only by understanding all three does the question "should I file bankruptcy to discharge my student loans" get a complete answer. Pathway 1 - Borrower Defense to Repayment (BDR) What BDR actually is Borrower Defense to Repayment is a federal regulation at 34 CFR § 685.206(c) (loans originated before July 1, 2017) and 34 CFR § 685.222 (loans originated on or after July 1, 2017), most recently revised by the Department of Education's October 2022 rulemaking. The rule allows federal Direct Loan borrowers to apply for full discharge of their loans when the school committed misconduct that induced the borrower to take the loans. The "misconduct" standard varies by regulatory era - pre-2017 loans use a state-law breach-of-contract or misrepresentation standard; 2017-2020 loans use a federal misrepresentation standard requiring reliance and harm; post-2020 loans apply a unified federal standard reached in the 2022 rulemaking. In practice, the factual pattern that qualifies in every era is the same: a school misrepresented job-placement statistics, credit transferability, accreditation, licensure outcomes, or program quality in a way that induced the borrower's enrollment and debt. Which schools are involved The vast majority of BDR approvals have involved for-profit colleges - Corinthian Colleges (Heald, Everest, WyoTech), ITT Technical Institute, Westwood College, Career Education Corporation, DeVry University (partial), Art Institutes, the University of Phoenix (partial), and a long tail of smaller programs. Public universities and nonprofit private universities have had comparatively few BDR approvals, though exceptions exist for specific programs with documented misrepresentation. How to apply Form at StudentAid.gov. The Department maintains the active application at studentaid.gov/borrower-defense. Paper alternatives are available but electronic submission is standard. Narrative + documentation. Applicants submit a written narrative describing the misconduct and attach documents - enrollment contracts, advertising materials, transcripts, emails, whatever supports the claim. Generic form submissions without specific allegations are routinely denied. Pause while pending. Loans are placed in "forbearance with no interest accruing" under the 2022 rule while the application is under review. This reverses the older practice of continued interest accrual during review. Decision. The Department issues a written decision - full discharge, partial discharge, or denial. Partial discharges cover specific loan periods or specific programs, not all the borrower's loans. Timeline reality BDR is not fast. Applications filed in 2020 were still receiving decisions in 2024. The Sweet v. Cardona class action was in part a response to that backlog - automating discharges for applications that had been pending for years without Department action. If you apply today, realistic expectations are 12-36 months to a decision, with continued regulatory flux driven by ED staffing and rulemaking changes. Pathway 2 - Sweet v. Cardona / Sweet v. McMahon Origin and what it accomplished Sweet v. DeVos (later Sweet v. Cardona, then Sweet v. McMahon as secretaries of education changed) was filed in 2019 as a class action challenging the Department of Education's failure to decide pending Borrower Defense applications. The named plaintiffs had applications sitting for years without action. The class covered all borrowers with pending BDR applications as of a cutoff date. The case settled in November 2022 before Judge William Alsup in the Northern District of California. The settlement's two primary mechanisms: Automatic full discharge for applications from 151 listed schools. The settlement approved a list of schools (the "Exhibit C" list) where ongoing pattern evidence was sufficient that all pending BDR applications from those schools would be granted without further individual review. An estimated 200,000+ borrowers received automatic full discharges under this mechanism. Expedited review for other pending applications. Class members whose schools were not on Exhibit C had their applications reviewed within a fixed timeline under a streamlined standard, with deemed approvals if the Department failed to act. Current status (2026) Most Exhibit C discharges have been processed. A subset of class members are still awaiting resolution due to loan-servicer processing delays, disputed discharge amounts, or pending appeals. The Department continues to post status updates at studentaid.gov/borrower-defense/swee-v-cardona-discharges. A small population of Sweet class members have had approved discharges reversed or reduced in the follow-on litigation tracking subsequent administration changes - a reminder that policy direction can change even after a judicial settlement is in place. Who is still covered The Sweet class is closed - you cannot join it by applying today. The settlement covered applications pending as of specific cutoff dates in 2019. If you applied after the class-certification cutoff, you are in the regular BDR pathway (Pathway 1), not the Sweet pathway. Practical read: If you have not heard about Sweet from your loan servicer, you are almost certainly not a class member. Eligible borrowers received notices through 2023-2024. If you think you should have been covered but did not receive a notice, check studentaid.gov/borrower-defense or contact your loan servicer. The class-membership portal is no longer accepting new registrations. Pathway 3 - Total and Permanent Disability (TPD) What TPD discharge is Under 34 CFR § 685.213, federal student loan borrowers who are totally and permanently disabled can discharge their loans. The discharge is not partial; approved applicants have their balances zeroed and are released from any further obligation. TPD discharge also voids the IRS tax-income treatment of the discharged amount - since 2017, TPD discharges have been excluded from taxable income under IRC § 108(f)(5). Three qualifying paths Three independent ways to establish total and permanent disability: Social Security Administration. An SSA benefit notice showing SSI or SSDI with a "medical improvement not expected" (MINE) designation, or a 5-to-7 year review schedule, qualifies. Since the August 2019 Department-SSA data match, the Department automatically identifies qualifying borrowers and initiates discharges without the borrower needing to apply. This match has processed hundreds of thousands of discharges since 2021. Veterans' service-connected disability. A VA determination of 100% service-connected disability (or individual unemployability) qualifies. Veterans also benefit from a direct data match with the VA that initiates automatic discharges. Physician certification. For borrowers not covered by SSA or VA, a physician's certification that the borrower cannot engage in substantial gainful activity due to a physical or mental impairment that has lasted, or is expected to last, at least 60 months (or result in death) qualifies. This is the individualized-application path and requires the Department's TPD application form. The three-year monitoring period (eliminated July 2023) Under the pre-2023 rule, TPD discharges were subject to a three-year monitoring period during which the Department could reinstate loans if the borrower's income exceeded the Social Security threshold. That monitoring requirement was eliminated in the Department's July 2023 rule. Discharges granted under current rules are final and cannot be reinstated based on post-discharge income. Discharges granted before July 2023 may still be subject to legacy monitoring terms. If you received a TPD discharge between 2013 and July 2023, check the approval letter for monitoring-period language. If the monitoring period has passed without reinstatement, the discharge is permanent. If the period has not fully expired, the Department's stated position is that current (post-rule) terms apply - but verify with your servicer. The 2019 SSA data match The single most under-publicized federal benefit in recent memory. Since August 2019, the Department of Education runs quarterly matches against SSA disability records. Borrowers identified as SSA-TPD-eligible receive a pre-populated discharge notice, and if the borrower does not opt out, the discharge processes automatically. Hundreds of thousands of discharges have gone through this pipeline without borrowers ever filling out a form. Reddit posts in 2024-2026 include multiple variations of "I just got a letter saying my loans were discharged and I didn't apply for anything" - the SSA match in action. If you have an SSA disability benefit and federal student loans, and have not received such a notice, verify with your loan servicer that the match is running against your records. The mechanism exists specifically so borrowers do not have to know about it. How These Paths Interact With Bankruptcy Bankruptcy discharge of student loans under 11 U.S.C. § 523(a)(8) requires proving "undue hardship" in an adversary proceeding - historically under the Brunner test, though the 2022 DOJ Attorney Guidance substantially streamlined the federal-loan path. The 2022 DOJ Attorney Guidance In November 2022, the Department of Justice issued guidance to U.S. Attorneys about how to handle bankruptcy adversary proceedings involving federal student loans. The guidance directs U.S. Attorneys to recommend discharge - stipulating to it rather than contesting it - when the borrower meets an objective financial-hardship threshold based on an attestation form. The threshold roughly tracks: Household income at or below 150-225% of federal poverty level for household size, AND Projected inability to maintain minimal standard of living while paying the loans, AND Good-faith past effort to repay or to qualify for an IDR plan. The guidance is a policy directive, not a statutory change - the Brunner test still technically governs. But because the DOJ is the defending party in federal-loan adversary proceedings, the agency's pre-commitment to stipulate to discharge for qualifying borrowers effectively makes discharge available to anyone who clears the attestation-form threshold. Discharge rates in adversary proceedings rose dramatically in 2023-2024 as a result. Sequencing the options If you have...Try firstThen Federal loans + misconduct case against schoolBorrower Defense to RepaymentBankruptcy adversary if BDR denied Federal loans + SSA disabilityWait for automatic SSA-match TPDPhysician-certified TPD if match doesn't trigger; bankruptcy if both fail Federal loans + general undue hardship2022 DOJ Guidance adversary proceedingBrunner-test litigation if denied Private loansBankruptcy adversary (no BDR/TPD/Sweet coverage)Brunner test; note private-loan qualified-education-loan boundary Mixed federal + privateBDR/TPD for federal portion; adversary for private portionBoth tracks can run in parallel Private student loans - a different problem Borrower Defense, Sweet, and TPD apply only to federal student loans. Private student loans (Sallie Mae, Navient private, Wells Fargo private, Discover Student Loans) have no equivalent administrative discharge pathway. The only discharge mechanism for private student loans is a bankruptcy adversary proceeding - and private loans are often the easier target because courts have held that private loans not meeting the narrow "qualified education loan" definition in 26 U.S.C. § 221(d)(1) are fully dischargeable like any other consumer debt. Loans for living expenses beyond tuition, loans for non-Title-IV institutions, and loans that exceed the cost of attendance have been held dischargeable under this analysis in multiple circuits. Scenarios Scenario 1 - Former Corinthian Colleges student, 2012 enrollment, $80k federal loans Corinthian is on the Sweet Exhibit C list. If the borrower had a pending BDR application as of the 2019 class-certification cutoff, they should have received an automatic full discharge in 2023-2024. If they did not apply for BDR until 2025, they are in the regular BDR pipeline - still likely to receive full discharge given Corinthian's documented misconduct record, but processing takes 12-36 months. No bankruptcy filing needed for the federal loans. Scenario 2 - Disabled veteran, 100% service-connected, $45k federal loans, never applied for TPD The VA-Department data match should have identified this borrower for automatic TPD discharge. If it has not, check with the VA that the 100% rating is in the federal data match system (occasionally records are missed). A direct TPD application with the VA letter takes 60-90 days from filing to discharge under current processing times. No bankruptcy needed. Scenario 3 - 45 years old, $120k federal loans, household income $35k, on food assistance, chronic health conditions but no formal disability rating TPD not available (no SSA/VA rating and no physician-certified inability to work). BDR not available (no school-misconduct factual basis). Bankruptcy adversary proceeding under the 2022 DOJ Guidance is the viable path. Household income at 150-225% of federal poverty level for household size; past repayment attempt through forbearance and IDR; attestation form should support stipulation to discharge. Chapter 7 adversary proceeding typically costs $2,000-$4,000 in attorney fees on top of the base Chapter 7 fee - often paid from post-discharge income under payment plan. Scenario 4 - $60k in private Sallie Mae loans, federal loans in IDR, no hardship BDR, Sweet, and TPD are federal-loan-only. Private loans must be addressed in bankruptcy. Two factors favor a private-loan adversary: (1) courts split on whether private loans are "qualified education loans" protected by § 523(a)(8), and (2) even if protected, the 2022 DOJ Guidance does not bind private lenders, so private creditors' willingness to stipulate varies. An adversary proceeding against the private lender often results in settlement at 20-40 cents on the dollar. What NOT to Do Do not pay a company to "apply for Borrower Defense on your behalf." BDR applications are free at studentaid.gov/borrower-defense. Companies charging fees for these applications have been sued by state attorneys general in multiple states. The FTC has obtained consent orders against several. If a company is charging to help with BDR, it is a scam - the Department of Education will not communicate with paid representatives about BDR applications anyway. Do not default to force discharge. A folk belief circulates that defaulting triggers discharge after some period of time. It does not. Default on federal student loans triggers wage garnishment, tax refund offset, Social Security offset, and professional-license suspension in some states. Default does not bring you closer to discharge; it moves you further from any of the administrative pathways. Do not stop making payments while BDR is pending without confirming forbearance. The 2022 rule places pending BDR loans in forbearance with no interest accrual, but the forbearance is initiated after application is filed and processed. If you stop payment before confirming forbearance status, you can enter default while the application is pending. Confirm forbearance in writing before stopping payments. Do not assume older discharge denials are final under current law. Several Department rulemaking changes between 2022 and 2024 re-opened pathways that previously had been closed. If you were denied BDR or TPD before 2022, a fresh application under current rules is often worth trying. The application is free and does not prejudice other options. Application Checklist - Federal Student Loan Discharge If you suspect school misconduct File BDR at studentaid.gov/borrower-defense. Include as much documentation as you can - enrollment agreements, advertising, job-placement claims, transcripts, email records. Confirm forbearance status within 30 days of filing. Track your application via the servicer and StudentAid.gov messages. Do not pay a third party to help. If you have a qualifying disability Verify SSA/VA data match is current. Your servicer should have a record. If no automatic discharge after 90 days from benefit award, file the TPD application at disabilitydischarge.com (the Department's contractor). Include the SSA benefit notice, VA disability rating, or physician certification. Discharge processing typically 60-120 days post-complete application. If you have federal loans, financial hardship, no misconduct, no disability Document hardship - last 2 tax returns, pay stubs, household expenses vs. income. Confirm you have attempted IDR enrollment (SAVE, PAYE, or successor plan) as evidence of good-faith repayment attempt. Consult a bankruptcy attorney about filing a Chapter 7 or Chapter 13 with a student-loan adversary proceeding under the 2022 DOJ Guidance standard. Be prepared for the attestation form - the DOJ form is the gate for streamlined discharge. If you have private loans Identify whether the loans are "qualified education loans" under 26 U.S.C. § 221(d)(1) - loans only for cost of attendance at a Title IV school. Non-qualified loans are dischargeable in bankruptcy without an undue-hardship showing in most circuits. Even qualified private loans are more easily discharged than federal loans because private lenders have no DOJ backing and often settle rather than litigate. An adversary proceeding against private lenders resolves in 6-12 months typically. Frequently Asked Questions Can my loans be discharged if my school closed? Yes, under the Closed School Discharge at 34 CFR § 685.214. Different from BDR - closed-school discharge applies when your school closed while you were enrolled or within 180 days after you withdrew (120 days for loans before July 2023). Full discharge, no misconduct required. Apply through your loan servicer. What if I got a BDR discharge and then had it reversed? Some 2016-2019 Corinthian and ITT BDR discharges were partially reduced by subsequent administration policy changes. The Sweet settlement restored many of those. If your discharge was reduced and you have not heard from the Department about reinstatement, contact the Project on Predatory Student Lending (ppsl.org) - they have been tracking reduced-discharge cases. Does TPD discharge affect my Social Security benefits? No. Under the pre-2023 rule there was a monitoring period during which post-discharge income could trigger reinstatement, but that never touched SSA benefits themselves. Current rule eliminates the monitoring period entirely. SSA benefits are unaffected by TPD discharge. I've been told I'm "Sweet v. Cardona eligible" - is this a scam? Possibly. Legitimate Sweet class members received notice directly from the Department of Education via their loan servicer. Third-party "you are eligible" outreach through phone, text, or random email - especially anything asking for payment or Social Security numbers - is a scam. Verify any discharge claim at studentaid.gov with your FSA ID. What if I've already filed bankruptcy and had my student loans declared nondischargeable? You can re-open the case and file a new adversary under current law, but the fact of prior litigation may affect the 2022 DOJ Guidance attestation analysis. Better path for most: apply for BDR or TPD first (no bankruptcy re-opening needed), and return to the bankruptcy path only if those fail. Will discharged student loans be treated as taxable income? Not through 2025 (federal). The American Rescue Plan Act of 2021 excluded most student-loan-cancellation events from federal gross income through December 31, 2025. TPD discharges were already excluded permanently under IRC § 108(f)(5). Private loan discharges through bankruptcy are excluded under the bankruptcy insolvency rule. State tax treatment varies - a few states do not conform to the federal exclusion. Do any of these pathways affect my credit report? BDR and Sweet discharges typically appear as "paid" or "discharged" on credit reports. TPD appears as "discharged due to disability." None should report as default if the loans were current at discharge. Bankruptcy adversary proceedings appear with the Chapter 7 or Chapter 13 notation on the consumer report - standard bankruptcy credit impact. Can I apply for Borrower Defense as a Parent PLUS borrower? Yes, but the misconduct showing must relate to how the school interacted with the parent (or, in some cases, with the student on whose behalf the parent borrowed). Parent PLUS BDR applications are less common than student-side but have been approved for Corinthian and ITT parent-borrowers in particular. Not sure which pathway applies? Run the free screener. Free Eligibility Screener About This Content: Based on federal regulations at 34 CFR Part 685, the November 2022 DOJ guidance on student loan bankruptcy discharge, the Sweet v. Cardona / Sweet v. McMahon settlement record in the Northern District of California, and ongoing Department of Education rulemaking through 2024. Federal student loan policy has moved rapidly through 2022-2026 and specific application processes change; verify current status at studentaid.gov before acting. This is educational content, not legal advice. Related Guides The Brunner Test Adversary Proceeding Procedure Private Student Loans in Bankruptcy Recent Changes 2024-2026 Income-Driven Repayment Should I File Bankruptcy? Authority sources for deeper research 34 CFR § 685.222 - Borrower Defense to Repayment current regulation 34 CFR § 685.213 - Total and Permanent Disability discharge studentaid.gov/borrower-defense - official BDR portal and status updates DOJ 2022 Attorney Guidance (PDF) - federal student loan bankruptcy adversary guidance Project on Predatory Student Lending - nonprofit legal support for student-loan borrowers 11 U.S.C. § 523 - bankruptcy nondischargeability provisions Free, open-source bankruptcy research. No ads. No affiliate links. Supported by donations. ♥ Donate bankruptcystudentloans.org - A project of the Open Bankruptcy Project, a 501(c)(3) public charity (EIN 41-5159631). Home · Brunner Test · Adversary Proceeding · Borrower Defense / Sweet / TPD · Private Loans · IDR · Recent Changes This site provides general information only and does not constitute legal advice. Federal student loan rules change rapidly; verify current status before acting. Consult a licensed attorney for advice on your specific situation. Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Alabama [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/alabama.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Alabama [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Alabama residents. Student Loan Discharge in Alabama Alabama sits in the Eleventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eleventh Circuit. The Eleventh Circuit Brunner Standard Applies Brunner. In re Cox, 338 F.3d 1238 (11th Cir. 2003). The Hemar Ins. Corp. v. Cox line has been influential on the second prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Alabama, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Alabama processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Alabama Disability and TPD Discharge No state-level discharge program; relies on federal TPD (Total and Permanent Disability). For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Alabama debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Alabama Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eleventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). Alabama median household income is below national median; SAVE/PAYE payments often close to $0 for many debtors. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Alabama debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Alabama Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Alabama debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Alabama Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Alabama consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,743 consumer bankruptcy cases from Alabama's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7478n/an/a Chapter 131,265n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Alabama Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Alabama: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Alabama Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Alabama range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Alabama Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Alabama bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Alaska [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/alaska.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Alaska [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Alaska residents. Student Loan Discharge in Alaska Alaska sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Alaska, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Alaska processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Alaska Disability and TPD Discharge State-level limited forgiveness programs for rural service; federal TPD otherwise. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Alaska debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Alaska Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Alaska PFD (Permanent Fund Dividend) is generally NOT counted as income for IDR. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Alaska debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Alaska Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Alaska debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Alaska Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Alaska: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Alaska Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Alaska range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Alaska Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Alaska bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Arizona [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/arizona.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Arizona [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Arizona residents. Student Loan Discharge in Arizona Arizona sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Arizona, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Arizona processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Arizona Disability and TPD Discharge Arizona offers partial state grant forgiveness for specific professions; federal TPD otherwise. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Arizona debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Arizona Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). High COL areas (Phoenix/Tucson) may reduce IDR payment via expense allowances. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Arizona debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Arizona Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Arizona debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Arizona Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Arizona: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Arizona Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Arizona range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Arizona Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Arizona bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Arkansas [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/arkansas.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Arkansas [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Arkansas residents. Student Loan Discharge in Arkansas Arkansas sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Arkansas, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Arkansas processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Arkansas Disability and TPD Discharge Teacher Loan Repayment for critical shortage areas (AR TOPS). For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Arkansas debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Arkansas Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median incomes common; IDR monthly payments typically low. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Arkansas debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Arkansas Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Arkansas debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Arkansas Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Arkansas consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 959 consumer bankruptcy cases from Arkansas's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 746296.7%3.3% Chapter 1349760.9%39.1% Rates computed on resolved cases only. Source: FJC Integrated Database. Arkansas Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Arkansas: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Arkansas Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Arkansas range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Arkansas Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Arkansas bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in California [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/california.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in California [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for California residents. Student Loan Discharge in California California sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in California, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in California processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. California Disability and TPD Discharge California State Loan Repayment Program (SLRP) for health professionals; federal TPD for disability. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any California debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. California Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). COL allowance under SAVE is high in CA urban areas; SF/LA debtors get meaningful expense offset. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A California debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in California Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For California debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. California Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The California consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 6,723 consumer bankruptcy cases from California's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 75,80898.4%1.6% Chapter 1391538.8%61.2% Rates computed on resolved cases only. Source: FJC Integrated Database. California Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in California: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for California Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical California range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related California Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ California bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Colorado [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/colorado.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Colorado [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Colorado residents. Student Loan Discharge in Colorado Colorado sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Colorado, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Colorado processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Colorado Disability and TPD Discharge Colorado Health Service Corps; federal TPD for disability. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Colorado debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Colorado Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Denver metro IDR modeling benefits from elevated BLS housing allowance. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Colorado debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Colorado Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Colorado debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Colorado Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Colorado consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 86 consumer bankruptcy cases from Colorado's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 78498.8%1.2% Chapter 132n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Colorado Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Colorado: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Colorado Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Colorado range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Colorado Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Colorado bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Connecticut [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/connecticut.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Connecticut [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Connecticut residents. Student Loan Discharge in Connecticut Connecticut sits in the Second Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Second Circuit. The Second Circuit Brunner Standard Adopted Brunner originally (the test is named after a 2d Circuit case). Strict three-prong application. Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987). Good-faith prong heavily scrutinized. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Connecticut, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Connecticut processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Connecticut Disability and TPD Discharge CT primary care loan repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Connecticut debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Connecticut Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Second Circuit require the debtor to show they have attempted income-driven repayment (IDR). High COL; meaningful IDR expense offset available. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Connecticut debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Connecticut Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Connecticut debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Connecticut Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Connecticut consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 93 consumer bankruptcy cases from Connecticut's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 77495.2%4.8% Chapter 1319n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Connecticut Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Connecticut: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Connecticut Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Connecticut range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Connecticut Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Connecticut bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Delaware [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/delaware.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Delaware [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Delaware residents. Student Loan Discharge in Delaware Delaware sits in the Third Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Third Circuit. The Third Circuit Brunner Standard Applies Brunner. In re Faish, 72 F.3d 298 (3d Cir. 1995). Partial discharge permitted in some bankruptcy courts under In re Saxman logic. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Delaware, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Delaware processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Delaware Disability and TPD Discharge DE State Loan Repayment Program for health professionals; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Delaware debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Delaware Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Third Circuit require the debtor to show they have attempted income-driven repayment (IDR). Smaller program volume but federal IDR covers most debtors. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Delaware debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Delaware Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Delaware debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Delaware Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Delaware: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Delaware Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Delaware range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Delaware Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Delaware bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in District of Columbia [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/district-of-columbia.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in District of Columbia [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for District of Columbia residents. Student Loan Discharge in District of Columbia District of Columbia sits in the D.C. Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the D.C. Circuit. The D.C. Circuit Brunner Standard D.C. bankruptcy courts follow the Brunner framework as applied in the D.C. Circuit. Few published circuit-level opinions directly on student loan discharge. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in District of Columbia, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in District of Columbia processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. District of Columbia Disability and TPD Discharge DC Higher Education Loan Assistance for public servants; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any District of Columbia debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. District of Columbia Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the D.C. Circuit require the debtor to show they have attempted income-driven repayment (IDR). D.C. has high per-capita enrollment in PSLF; 120-payment model common. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A District of Columbia debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in District of Columbia Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For District of Columbia debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. District of Columbia Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in District of Columbia: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for District of Columbia Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical District of Columbia range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related District of Columbia Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ District of Columbia bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Florida [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/florida.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Florida [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Florida residents. Student Loan Discharge in Florida Florida sits in the Eleventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eleventh Circuit. The Eleventh Circuit Brunner Standard Applies Brunner. In re Cox, 338 F.3d 1238 (11th Cir. 2003). The Hemar Ins. Corp. v. Cox line has been influential on the second prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Florida, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Florida processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Florida Disability and TPD Discharge Florida limited programs for nursing/teaching; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Florida debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Florida Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eleventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). Low state income tax; but IDR only counts AGI, not state tax posture. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Florida debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Florida Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Florida debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Florida Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Florida consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 46,008 consumer bankruptcy cases from Florida's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 724,38994.2%5.1% Chapter 1321,61951.3%48.6% Rates computed on resolved cases only. Source: FJC Integrated Database. Florida Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Florida: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Florida Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Florida range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Florida Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Florida bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Georgia [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/georgia.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Georgia [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Georgia residents. Student Loan Discharge in Georgia Georgia sits in the Eleventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eleventh Circuit. The Eleventh Circuit Brunner Standard Applies Brunner. In re Cox, 338 F.3d 1238 (11th Cir. 2003). The Hemar Ins. Corp. v. Cox line has been influential on the second prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Georgia, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Georgia processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Georgia Disability and TPD Discharge GA HOPE-related assistance; federal TPD for disability. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Georgia debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Georgia Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eleventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-national median areas have low IDR calculation bases. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Georgia debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Georgia Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Georgia debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Georgia Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Georgia consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,240 consumer bankruptcy cases from Georgia's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 796998.6%0.8% Chapter 1327171.2%28.8% Rates computed on resolved cases only. Source: FJC Integrated Database. Georgia Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Georgia: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Georgia Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Georgia range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Georgia Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Georgia bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Hawaii [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/hawaii.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Hawaii [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Hawaii residents. Student Loan Discharge in Hawaii Hawaii sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Hawaii, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Hawaii processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Hawaii Disability and TPD Discharge HI Health Service Corps; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Hawaii debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Hawaii Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Hawaii COL adjustment is among the highest in the federal IDR modeling. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Hawaii debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Hawaii Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Hawaii debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Hawaii Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Hawaii: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Hawaii Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Hawaii range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Hawaii Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Hawaii bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Idaho [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/idaho.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Idaho [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Idaho residents. Student Loan Discharge in Idaho Idaho sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Idaho, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Idaho processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Idaho Disability and TPD Discharge Limited state programs; federal TPD primary path. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Idaho debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Idaho Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Idaho median income below federal levels; low IDR payments common. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Idaho debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Idaho Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Idaho debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Idaho Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Idaho: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Idaho Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Idaho range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Idaho Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Idaho bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Illinois [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/illinois.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Illinois [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Illinois residents. Student Loan Discharge in Illinois Illinois sits in the Seventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Seventh Circuit. The Seventh Circuit Brunner Standard Applies Brunner. In re Roberson, 999 F.2d 1132 (7th Cir. 1993). Partial discharges available under In re Saxman-style reasoning. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Illinois, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Illinois processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Illinois Disability and TPD Discharge IL Nurse Educator Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Illinois debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Illinois Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Seventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). Chicago COL materially affects IDR expense calculations. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Illinois debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Illinois Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Illinois debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Illinois Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Illinois consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 9,898 consumer bankruptcy cases from Illinois's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 76,72999.5%0.4% Chapter 133,16945.9%53.7% Rates computed on resolved cases only. Source: FJC Integrated Database. Illinois Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Illinois: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Illinois Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Illinois range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Illinois Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Illinois bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy by State by State [2026] Source: https://bankruptcystudentloans.org/states/ ← bankruptcystudentloans.org home Student Loan Bankruptcy by State by State State and circuit-level Brunner analysis, state disability programs, federal TPD pathways, and IDR baselines for student loan discharge. All 50 States and DC AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Part of the Open Bankruptcy Project - free, open-source bankruptcy information. Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Indiana [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/indiana.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Indiana [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Indiana residents. Student Loan Discharge in Indiana Indiana sits in the Seventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Seventh Circuit. The Seventh Circuit Brunner Standard Applies Brunner. In re Roberson, 999 F.2d 1132 (7th Cir. 1993). Partial discharges available under In re Saxman-style reasoning. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Indiana, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Indiana processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Indiana Disability and TPD Discharge IN Primary Care Physician Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Indiana debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Indiana Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Seventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). Standard federal IDR; below-average IDR payment for most filers. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Indiana debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Indiana Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Indiana debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Indiana Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Indiana consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 3,325 consumer bankruptcy cases from Indiana's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 779297.5%2.0% Chapter 132,53369.8%29.5% Rates computed on resolved cases only. Source: FJC Integrated Database. Indiana Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Indiana: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Indiana Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Indiana range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Indiana Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Indiana bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Iowa [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/iowa.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Iowa [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Iowa residents. Student Loan Discharge in Iowa Iowa sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Iowa, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Iowa processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Iowa Disability and TPD Discharge Iowa Rural Nurse/Physician Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Iowa debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Iowa Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Rural-service forgiveness often more lucrative than discharge for IA debtors. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Iowa debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Iowa Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Iowa debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Iowa Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Iowa: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Iowa Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Iowa range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Iowa Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Iowa bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Kansas [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/kansas.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Kansas [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Kansas residents. Student Loan Discharge in Kansas Kansas sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Kansas, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Kansas processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Kansas Disability and TPD Discharge Kansas Nursing/Physician Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Kansas debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Kansas Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median statewide; IDR rarely problematic. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Kansas debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Kansas Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Kansas debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Kansas Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Kansas consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 40,849 consumer bankruptcy cases from Kansas's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 718,67399.4%0.5% Chapter 1322,17673.1%26.9% Rates computed on resolved cases only. Source: FJC Integrated Database. Kansas Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Kansas: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Kansas Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Kansas range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Kansas Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Kansas bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Kentucky [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/kentucky.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Kentucky [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Kentucky residents. Student Loan Discharge in Kentucky Kentucky sits in the Sixth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Sixth Circuit. The Sixth Circuit Brunner Standard Applies Brunner. In re Oyler, 397 F.3d 382 (6th Cir. 2005). Good-faith considered based on repayment history and lifestyle choices. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Kentucky, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Kentucky processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Kentucky Disability and TPD Discharge KY Higher Education Assistance; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Kentucky debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Kentucky Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Sixth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Low median income; SAVE plan covers many KY debtors at $0/month. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Kentucky debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Kentucky Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Kentucky debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Kentucky Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Kentucky consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,692 consumer bankruptcy cases from Kentucky's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 731897.5%1.7% Chapter 131,37472.1%27.0% Rates computed on resolved cases only. Source: FJC Integrated Database. Kentucky Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Kentucky: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Kentucky Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Kentucky range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Kentucky Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Kentucky bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Louisiana [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/louisiana.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Louisiana [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Louisiana residents. Student Loan Discharge in Louisiana Louisiana sits in the Fifth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fifth Circuit. The Fifth Circuit Brunner Standard Applies Brunner. In re Gerhardt, 348 F.3d 89 (5th Cir. 2003). Historically strict; the 2019 Thomas decision narrowed "minimal standard of living" but also reaffirmed Brunner. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Louisiana, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Louisiana processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Louisiana Disability and TPD Discharge Limited state programs; federal TPD primary path. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Louisiana debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Louisiana Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fifth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Louisiana has among the highest Chapter 13 dismissal rates; student loan hardship compounds that. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Louisiana debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Louisiana Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Louisiana debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Louisiana Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Louisiana: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Louisiana Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Louisiana range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Louisiana Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Louisiana bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Maine [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/maine.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Maine [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Maine residents. Student Loan Discharge in Maine Maine sits in the 1st Circuit, which blends Brunner with totality-of-the-circumstances flexibility. Partial discharges and equitable considerations are more accessible than in strict-Brunner circuits. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the First Circuit. The First Circuit Brunner Standard Uses a blend of Brunner and totality-of-circumstances. Bronsdon v. Educ. Credit Mgmt. Corp., 435 B.R. 791 (1st Cir. BAP 2010); In re Nash, 446 F.3d 188 (1st Cir. 2006) allows flexibility on the "additional circumstances" prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Maine, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Maine processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Maine Disability and TPD Discharge Maine Health Professions Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Maine debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Maine Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the First Circuit require the debtor to show they have attempted income-driven repayment (IDR). ME has active federal TPD outreach through state legal aid. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Maine debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Maine Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Maine debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Maine Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Maine: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Maine Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Maine range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Maine Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Maine bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Maryland [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/maryland.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Maryland [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Maryland residents. Student Loan Discharge in Maryland Maryland sits in the Fourth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fourth Circuit. The Fourth Circuit Brunner Standard Applies Brunner. In re Frushour, 433 F.3d 393 (4th Cir. 2005). Strict good-faith inquiry; debtors expected to document IBR/IDR attempts. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Maryland, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Maryland processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Maryland Disability and TPD Discharge Maryland State Loan Repayment Assistance (SmartBuy and others); federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Maryland debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Maryland Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fourth Circuit require the debtor to show they have attempted income-driven repayment (IDR). MD has one of the more generous state-level loan repayment match programs. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Maryland debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Maryland Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Maryland debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Maryland Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Maryland consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 559 consumer bankruptcy cases from Maryland's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 742097.4%0.0% Chapter 13139n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Maryland Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Maryland: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Maryland Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Maryland range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Maryland Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Maryland bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Massachusetts [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/massachusetts.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Massachusetts [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Massachusetts residents. Student Loan Discharge in Massachusetts Massachusetts sits in the 1st Circuit, which blends Brunner with totality-of-the-circumstances flexibility. Partial discharges and equitable considerations are more accessible than in strict-Brunner circuits. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the First Circuit. The First Circuit Brunner Standard Uses a blend of Brunner and totality-of-circumstances. Bronsdon v. Educ. Credit Mgmt. Corp., 435 B.R. 791 (1st Cir. BAP 2010); In re Nash, 446 F.3d 188 (1st Cir. 2006) allows flexibility on the "additional circumstances" prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Massachusetts, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Massachusetts processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Massachusetts Disability and TPD Discharge MA Loan Repayment Program for Health Professionals; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Massachusetts debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Massachusetts Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the First Circuit require the debtor to show they have attempted income-driven repayment (IDR). Strong state match for health professionals; COL offset meaningful in Boston. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Massachusetts debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Massachusetts Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Massachusetts debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Massachusetts Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Massachusetts consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,356 consumer bankruptcy cases from Massachusetts's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 71,29098.3%0.9% Chapter 136659.1%40.9% Rates computed on resolved cases only. Source: FJC Integrated Database. Massachusetts Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Massachusetts: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Massachusetts Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Massachusetts range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Massachusetts Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Massachusetts bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Michigan [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/michigan.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Michigan [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Michigan residents. Student Loan Discharge in Michigan Michigan sits in the Sixth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Sixth Circuit. The Sixth Circuit Brunner Standard Applies Brunner. In re Oyler, 397 F.3d 382 (6th Cir. 2005). Good-faith considered based on repayment history and lifestyle choices. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Michigan, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Michigan processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Michigan Disability and TPD Discharge MI Dental Scholarship, MI Nurse Educator; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Michigan debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Michigan Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Sixth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Detroit metro COL modeling can reduce IDR payments. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Michigan debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Michigan Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Michigan debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Michigan Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Michigan consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,133 consumer bankruptcy cases from Michigan's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7633100.0%0.0% Chapter 1350048.3%51.0% Rates computed on resolved cases only. Source: FJC Integrated Database. Michigan Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Michigan: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Michigan Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Michigan range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Michigan Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Michigan bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Minnesota [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/minnesota.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Minnesota [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Minnesota residents. Student Loan Discharge in Minnesota Minnesota sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Minnesota, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Minnesota processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Minnesota Disability and TPD Discharge MN Loan Repayment (multi-profession); federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Minnesota debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Minnesota Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Generous state match; rural service tracks. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Minnesota debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Minnesota Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Minnesota debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Minnesota Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Minnesota consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 395 consumer bankruptcy cases from Minnesota's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 737999.7%0.3% Chapter 1316n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Minnesota Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Minnesota: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Minnesota Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Minnesota range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Minnesota Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Minnesota bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Mississippi [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/mississippi.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Mississippi [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Mississippi residents. Student Loan Discharge in Mississippi Mississippi sits in the Fifth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fifth Circuit. The Fifth Circuit Brunner Standard Applies Brunner. In re Gerhardt, 348 F.3d 89 (5th Cir. 2003). Historically strict; the 2019 Thomas decision narrowed "minimal standard of living" but also reaffirmed Brunner. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Mississippi, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Mississippi processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Mississippi Disability and TPD Discharge Mississippi Teacher/Nursing Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Mississippi debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Mississippi Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fifth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median state income; IDR rarely at the $0 floor binding issue. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Mississippi debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Mississippi Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Mississippi debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Mississippi Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Mississippi: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Mississippi Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Mississippi range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Mississippi Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Mississippi bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Missouri [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/missouri.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Missouri [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Missouri residents. Student Loan Discharge in Missouri Missouri sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Missouri, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Missouri processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Missouri Disability and TPD Discharge MO Primary Care Resource Initiative; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Missouri debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Missouri Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Missouri has historically high Chapter 13 dismissal risk; undue hardship must document that. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Missouri debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Missouri Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Missouri debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Missouri Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Missouri consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 45,771 consumer bankruptcy cases from Missouri's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 722,13299.0%0.8% Chapter 1323,63955.1%44.7% Rates computed on resolved cases only. Source: FJC Integrated Database. Missouri Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Missouri: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Missouri Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Missouri range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Missouri Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Missouri bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Montana [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/montana.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Montana [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Montana residents. Student Loan Discharge in Montana Montana sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Montana, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Montana processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Montana Disability and TPD Discharge MT Institutional Nursing Incentive; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Montana debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Montana Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Rural service tracks offer alternative to discharge. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Montana debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Montana Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Montana debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Montana Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Montana: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Montana Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Montana range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Montana Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Montana bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Nebraska [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/nebraska.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Nebraska [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Nebraska residents. Student Loan Discharge in Nebraska Nebraska sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Nebraska, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Nebraska processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Nebraska Disability and TPD Discharge NE Rural Health Advisory loan repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Nebraska debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Nebraska Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Federal TPD primary path; state programs supplement. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Nebraska debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Nebraska Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Nebraska debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Nebraska Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Nebraska consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 75 consumer bankruptcy cases from Nebraska's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 757100.0%0.0% Chapter 1318n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Nebraska Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Nebraska: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Nebraska Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Nebraska range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Nebraska Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Nebraska bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Nevada [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/nevada.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Nevada [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Nevada residents. Student Loan Discharge in Nevada Nevada sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Nevada, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Nevada processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Nevada Disability and TPD Discharge NV Health Service Corps; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Nevada debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Nevada Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Las Vegas COL meaningful for IDR calculations. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Nevada debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Nevada Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Nevada debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Nevada Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Nevada consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 242 consumer bankruptcy cases from Nevada's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 716493.4%5.9% Chapter 137837.2%62.8% Rates computed on resolved cases only. Source: FJC Integrated Database. Nevada Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Nevada: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Nevada Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Nevada range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Nevada Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Nevada bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in New Hampshire [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/new-hampshire.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in New Hampshire [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for New Hampshire residents. Student Loan Discharge in New Hampshire New Hampshire sits in the 1st Circuit, which blends Brunner with totality-of-the-circumstances flexibility. Partial discharges and equitable considerations are more accessible than in strict-Brunner circuits. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the First Circuit. The First Circuit Brunner Standard Uses a blend of Brunner and totality-of-circumstances. Bronsdon v. Educ. Credit Mgmt. Corp., 435 B.R. 791 (1st Cir. BAP 2010); In re Nash, 446 F.3d 188 (1st Cir. 2006) allows flexibility on the "additional circumstances" prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in New Hampshire, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in New Hampshire processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. New Hampshire Disability and TPD Discharge NH State Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any New Hampshire debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. New Hampshire Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the First Circuit require the debtor to show they have attempted income-driven repayment (IDR). Strong state programs for health professionals. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A New Hampshire debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in New Hampshire Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For New Hampshire debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. New Hampshire Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in New Hampshire: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for New Hampshire Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical New Hampshire range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related New Hampshire Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ New Hampshire bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in New Jersey [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/new-jersey.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in New Jersey [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for New Jersey residents. Student Loan Discharge in New Jersey New Jersey sits in the Third Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Third Circuit. The Third Circuit Brunner Standard Applies Brunner. In re Faish, 72 F.3d 298 (3d Cir. 1995). Partial discharge permitted in some bankruptcy courts under In re Saxman logic. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in New Jersey, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in New Jersey processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. New Jersey Disability and TPD Discharge NJ Primary Care Physician/Dentist Loan Redemption; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any New Jersey debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. New Jersey Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Third Circuit require the debtor to show they have attempted income-driven repayment (IDR). High COL adjusted in IDR; NJ loan redemption programs competitive. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A New Jersey debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in New Jersey Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For New Jersey debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. New Jersey Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The New Jersey consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,580 consumer bankruptcy cases from New Jersey's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 752697.3%2.7% Chapter 131,05431.0%68.8% Rates computed on resolved cases only. Source: FJC Integrated Database. New Jersey Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in New Jersey: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for New Jersey Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical New Jersey range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related New Jersey Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ New Jersey bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in New Mexico [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/new-mexico.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in New Mexico [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for New Mexico residents. Student Loan Discharge in New Mexico New Mexico sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in New Mexico, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in New Mexico processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. New Mexico Disability and TPD Discharge NM Health Professional Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any New Mexico debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. New Mexico Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median statewide; low IDR payments common. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A New Mexico debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in New Mexico Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For New Mexico debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. New Mexico Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in New Mexico: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for New Mexico Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical New Mexico range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related New Mexico Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ New Mexico bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in New York [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/new-york.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in New York [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for New York residents. Student Loan Discharge in New York New York sits in the Second Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Second Circuit. The Second Circuit Brunner Standard Adopted Brunner originally (the test is named after a 2d Circuit case). Strict three-prong application. Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987). Good-faith prong heavily scrutinized. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in New York, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in New York processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. New York Disability and TPD Discharge NY Regents Physician Loan Forgiveness, Nurse Faculty, and others; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any New York debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. New York Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Second Circuit require the debtor to show they have attempted income-driven repayment (IDR). NY has robust state-level forgiveness; NYC COL adjustment high in IDR. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A New York debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in New York Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For New York debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. New York Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The New York consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,231 consumer bankruptcy cases from New York's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 71,14598.7%1.2% Chapter 138628.2%71.8% Rates computed on resolved cases only. Source: FJC Integrated Database. New York Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in New York: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for New York Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical New York range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related New York Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ New York bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in North Carolina [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/north-carolina.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in North Carolina [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for North Carolina residents. Student Loan Discharge in North Carolina North Carolina sits in the Fourth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fourth Circuit. The Fourth Circuit Brunner Standard Applies Brunner. In re Frushour, 433 F.3d 393 (4th Cir. 2005). Strict good-faith inquiry; debtors expected to document IBR/IDR attempts. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in North Carolina, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in North Carolina processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. North Carolina Disability and TPD Discharge NC State Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any North Carolina debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. North Carolina Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fourth Circuit require the debtor to show they have attempted income-driven repayment (IDR). State programs target rural shortage areas; Brunner's good-faith prong well-understood in 4th Cir. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A North Carolina debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in North Carolina Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For North Carolina debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. North Carolina Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The North Carolina consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 827 consumer bankruptcy cases from North Carolina's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7273n/an/a Chapter 13554n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. North Carolina Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in North Carolina: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for North Carolina Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical North Carolina range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related North Carolina Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ North Carolina bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in North Dakota [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/north-dakota.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in North Dakota [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for North Dakota residents. Student Loan Discharge in North Dakota North Dakota sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in North Dakota, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in North Dakota processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. North Dakota Disability and TPD Discharge ND Professional Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any North Dakota debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. North Dakota Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Low population; federal programs cover most debtors. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A North Dakota debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in North Dakota Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For North Dakota debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. North Dakota Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in North Dakota: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for North Dakota Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical North Dakota range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related North Dakota Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ North Dakota bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Ohio [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/ohio.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Ohio [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Ohio residents. Student Loan Discharge in Ohio Ohio sits in the Sixth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Sixth Circuit. The Sixth Circuit Brunner Standard Applies Brunner. In re Oyler, 397 F.3d 382 (6th Cir. 2005). Good-faith considered based on repayment history and lifestyle choices. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Ohio, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Ohio processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Ohio Disability and TPD Discharge OH Choose Ohio First, Physician Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Ohio debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Ohio Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Sixth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Standard 6th Cir. Brunner; expense substantiation important. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Ohio debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Ohio Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Ohio debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Ohio Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Ohio consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 3,971 consumer bankruptcy cases from Ohio's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 73,53597.7%1.8% Chapter 1343651.1%48.9% Rates computed on resolved cases only. Source: FJC Integrated Database. Ohio Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Ohio: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Ohio Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Ohio range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Ohio Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Ohio bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Oklahoma [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/oklahoma.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Oklahoma [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Oklahoma residents. Student Loan Discharge in Oklahoma Oklahoma sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Oklahoma, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Oklahoma processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Oklahoma Disability and TPD Discharge OK Physician Manpower Training; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Oklahoma debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Oklahoma Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median state income; IDR payments manageable. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Oklahoma debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Oklahoma Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Oklahoma debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Oklahoma Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Oklahoma consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 112 consumer bankruptcy cases from Oklahoma's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 711099.1%0.9% Chapter 132n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Oklahoma Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Oklahoma: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Oklahoma Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Oklahoma range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Oklahoma Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Oklahoma bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Oregon [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/oregon.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Oregon [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Oregon residents. Student Loan Discharge in Oregon Oregon sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Oregon, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Oregon processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Oregon Disability and TPD Discharge OR Scholars for a Healthy Oregon; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Oregon debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Oregon Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). 9th Cir. applies Pena; partial discharges more accessible in OR bankruptcy court. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Oregon debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Oregon Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Oregon debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Oregon Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Oregon: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Oregon Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Oregon range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Oregon Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Oregon bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Pennsylvania [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/pennsylvania.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Pennsylvania [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Pennsylvania residents. Student Loan Discharge in Pennsylvania Pennsylvania sits in the Third Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Third Circuit. The Third Circuit Brunner Standard Applies Brunner. In re Faish, 72 F.3d 298 (3d Cir. 1995). Partial discharge permitted in some bankruptcy courts under In re Saxman logic. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Pennsylvania, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Pennsylvania processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Pennsylvania Disability and TPD Discharge PA Primary Care Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Pennsylvania debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Pennsylvania Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Third Circuit require the debtor to show they have attempted income-driven repayment (IDR). 3rd Cir. Brunner; Faish the leading case. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Pennsylvania debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Pennsylvania Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Pennsylvania debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Pennsylvania Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Pennsylvania consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,513 consumer bankruptcy cases from Pennsylvania's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7415n/an/a Chapter 131,098n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. Pennsylvania Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Pennsylvania: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Pennsylvania Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Pennsylvania range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Pennsylvania Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Pennsylvania bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Rhode Island [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/rhode-island.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Rhode Island [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Rhode Island residents. Student Loan Discharge in Rhode Island Rhode Island sits in the 1st Circuit, which blends Brunner with totality-of-the-circumstances flexibility. Partial discharges and equitable considerations are more accessible than in strict-Brunner circuits. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the First Circuit. The First Circuit Brunner Standard Uses a blend of Brunner and totality-of-circumstances. Bronsdon v. Educ. Credit Mgmt. Corp., 435 B.R. 791 (1st Cir. BAP 2010); In re Nash, 446 F.3d 188 (1st Cir. 2006) allows flexibility on the "additional circumstances" prong. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Rhode Island, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Rhode Island processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Rhode Island Disability and TPD Discharge RI Health Professional Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Rhode Island debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Rhode Island Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the First Circuit require the debtor to show they have attempted income-driven repayment (IDR). Small state; federal TPD and PSLF central. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Rhode Island debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Rhode Island Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Rhode Island debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Rhode Island Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Rhode Island: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Rhode Island Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Rhode Island range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Rhode Island Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Rhode Island bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in South Carolina [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/south-carolina.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in South Carolina [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for South Carolina residents. Student Loan Discharge in South Carolina South Carolina sits in the Fourth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fourth Circuit. The Fourth Circuit Brunner Standard Applies Brunner. In re Frushour, 433 F.3d 393 (4th Cir. 2005). Strict good-faith inquiry; debtors expected to document IBR/IDR attempts. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in South Carolina, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in South Carolina processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. South Carolina Disability and TPD Discharge SC Rural Health Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any South Carolina debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. South Carolina Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fourth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median state income areas have accessible IDR. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A South Carolina debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in South Carolina Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For South Carolina debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. South Carolina Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The South Carolina consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 635 consumer bankruptcy cases from South Carolina's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7301n/an/a Chapter 13334n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. South Carolina Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in South Carolina: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for South Carolina Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical South Carolina range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related South Carolina Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ South Carolina bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in South Dakota [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/south-dakota.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in South Dakota [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for South Dakota residents. Student Loan Discharge in South Dakota South Dakota sits in the 8th Circuit, which does NOT use the rigid Brunner test. Instead, the 8th Circuit applies a totality-of-the-circumstances test that is generally considered more favorable to debtors seeking student loan discharge. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003), is the controlling authority. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Eighth Circuit. The Eighth Circuit Brunner Standard Does NOT apply Brunner. Uses totality-of-the-circumstances test. Long v. ECMC, 322 F.3d 549 (8th Cir. 2003); Educational Credit Mgmt. Corp. v. Jesperson, 571 F.3d 775 (8th Cir. 2009). Significantly more debtor-friendly in theory. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in South Dakota, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in South Dakota processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. South Dakota Disability and TPD Discharge SD State Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any South Dakota debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. South Dakota Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Eighth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Limited program volume; 8th Cir. totality test is favorable for SD debtors. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A South Dakota debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in South Dakota Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For South Dakota debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. South Dakota Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in South Dakota: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for South Dakota Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical South Dakota range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related South Dakota Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ South Dakota bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Tennessee [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/tennessee.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Tennessee [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Tennessee residents. Student Loan Discharge in Tennessee Tennessee sits in the Sixth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Sixth Circuit. The Sixth Circuit Brunner Standard Applies Brunner. In re Oyler, 397 F.3d 382 (6th Cir. 2005). Good-faith considered based on repayment history and lifestyle choices. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Tennessee, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Tennessee processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Tennessee Disability and TPD Discharge TN State Loan Repayment (TSLRP); federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Tennessee debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Tennessee Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Sixth Circuit require the debtor to show they have attempted income-driven repayment (IDR). High Chapter 13 volume; undue hardship considerations important for plan treatment. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Tennessee debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Tennessee Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Tennessee debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Tennessee Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Tennessee consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,840 consumer bankruptcy cases from Tennessee's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 758995.5%4.5% Chapter 131,25117.3%82.7% Rates computed on resolved cases only. Source: FJC Integrated Database. Tennessee Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Tennessee: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Tennessee Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Tennessee range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Tennessee Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Tennessee bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Texas [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/texas.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Texas [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Texas residents. Student Loan Discharge in Texas Texas sits in the Fifth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fifth Circuit. The Fifth Circuit Brunner Standard Applies Brunner. In re Gerhardt, 348 F.3d 89 (5th Cir. 2003). Historically strict; the 2019 Thomas decision narrowed "minimal standard of living" but also reaffirmed Brunner. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Texas, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Texas processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Texas Disability and TPD Discharge TX Physician Education Loan Repayment, Teach for Texas; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Texas debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Texas Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fifth Circuit require the debtor to show they have attempted income-driven repayment (IDR). 5th Cir. Brunner; Gerhardt and Thomas control. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Texas debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Texas Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Texas debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Texas Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Texas consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 30,781 consumer bankruptcy cases from Texas's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 711,84497.8%2.0% Chapter 1318,93736.8%63.2% Rates computed on resolved cases only. Source: FJC Integrated Database. Texas Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Texas: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Texas Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Texas range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Texas Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Texas bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Utah [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/utah.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Utah [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Utah residents. Student Loan Discharge in Utah Utah sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Utah, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Utah processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Utah Disability and TPD Discharge UT Health Professional Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Utah debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Utah Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). 10th Cir. Brunner; McDaniel (2020) on private-loan distinction helpful. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Utah debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Utah Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Utah debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Utah Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Utah: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Utah Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Utah range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Utah Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Utah bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Vermont [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/vermont.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Vermont [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Vermont residents. Student Loan Discharge in Vermont Vermont sits in the Second Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Second Circuit. The Second Circuit Brunner Standard Adopted Brunner originally (the test is named after a 2d Circuit case). Strict three-prong application. Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987). Good-faith prong heavily scrutinized. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Vermont, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Vermont processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Vermont Disability and TPD Discharge VT Educational Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Vermont debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Vermont Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Second Circuit require the debtor to show they have attempted income-driven repayment (IDR). Small state; active legal aid support for TPD applications. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Vermont debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Vermont Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Vermont debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Vermont Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Vermont: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Vermont Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Vermont range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Vermont Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Vermont bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Virginia [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/virginia.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Virginia [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Virginia residents. Student Loan Discharge in Virginia Virginia sits in the Fourth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fourth Circuit. The Fourth Circuit Brunner Standard Applies Brunner. In re Frushour, 433 F.3d 393 (4th Cir. 2005). Strict good-faith inquiry; debtors expected to document IBR/IDR attempts. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Virginia, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Virginia processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Virginia Disability and TPD Discharge VA State Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Virginia debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Virginia Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fourth Circuit require the debtor to show they have attempted income-driven repayment (IDR). 4th Cir. Brunner; Frushour the leading case; good-faith prong carefully inquired. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Virginia debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Virginia Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Virginia debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Virginia Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Virginia consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,064 consumer bankruptcy cases from Virginia's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 7514n/an/a Chapter 1355071.2%28.7% Rates computed on resolved cases only. Source: FJC Integrated Database. Virginia Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Virginia: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Virginia Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Virginia range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Virginia Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Virginia bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Washington [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/washington.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Washington [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Washington residents. Student Loan Discharge in Washington Washington sits in the 9th Circuit, which applies Brunner with the Pena gloss. Partial discharges are available, and the DOJ/DOE November 2022 guidance is well-integrated in 9th Circuit practice. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Ninth Circuit. The Ninth Circuit Brunner Standard Applies Brunner. In re Pena, 155 F.3d 1108 (9th Cir. 1998). Allows partial discharge and considers payment-history attempts favorably under DOJ/DOE guidance. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Washington, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Washington processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Washington Disability and TPD Discharge WA Health Professional Loan Repayment; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Washington debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Washington Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Ninth Circuit require the debtor to show they have attempted income-driven repayment (IDR). 9th Cir. Pena-style partial discharges available. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Washington debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Washington Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Washington debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Washington Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Washington: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Washington Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Washington range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Washington Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Washington bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in West Virginia [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/west-virginia.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in West Virginia [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for West Virginia residents. Student Loan Discharge in West Virginia West Virginia sits in the Fourth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Fourth Circuit. The Fourth Circuit Brunner Standard Applies Brunner. In re Frushour, 433 F.3d 393 (4th Cir. 2005). Strict good-faith inquiry; debtors expected to document IBR/IDR attempts. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in West Virginia, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in West Virginia processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. West Virginia Disability and TPD Discharge WV Rural Health Initiative; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any West Virginia debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. West Virginia Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Fourth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Below-median; federal TPD primary disability path. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A West Virginia debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in West Virginia Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For West Virginia debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. West Virginia Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The West Virginia consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 60 consumer bankruptcy cases from West Virginia's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 75498.1%1.9% Chapter 136n/an/a Rates computed on resolved cases only. Source: FJC Integrated Database. West Virginia Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in West Virginia: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for West Virginia Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical West Virginia range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related West Virginia Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ West Virginia bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Wisconsin [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/wisconsin.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Wisconsin [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Wisconsin residents. Student Loan Discharge in Wisconsin Wisconsin sits in the Seventh Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Seventh Circuit. The Seventh Circuit Brunner Standard Applies Brunner. In re Roberson, 999 F.2d 1132 (7th Cir. 1993). Partial discharges available under In re Saxman-style reasoning. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Wisconsin, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Wisconsin processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Wisconsin Disability and TPD Discharge WI Health Professions Loan Assistance; federal TPD. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Wisconsin debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Wisconsin Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Seventh Circuit require the debtor to show they have attempted income-driven repayment (IDR). 7th Cir. Brunner; Roberson and Saxman-style partial discharges available. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Wisconsin debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Wisconsin Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Wisconsin debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Wisconsin Federal Bankruptcy Data Student loan adversary proceedings are filed within an underlying Chapter 7 or 13 case. The Wisconsin consumer bankruptcy volume below shows the size of the pool where a 523(a)(8) complaint could be brought. Numbers below come from the Federal Judicial Center Integrated Database covering 1,541 consumer bankruptcy cases from Wisconsin's federal bankruptcy courts. ChapterCases FiledDischarge RateDismissal Rate Chapter 795399.4%0.4% Chapter 1358848.1%51.9% Rates computed on resolved cases only. Source: FJC Integrated Database. Wisconsin Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Wisconsin: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Wisconsin Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Wisconsin range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Wisconsin Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Wisconsin bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Student Loan Bankruptcy in Wyoming [2026]: Brunner, TPD, and IDR Source: https://bankruptcystudentloans.org/states/wyoming.html ← bankruptcystudentloans.org home Student Loan Bankruptcy in Wyoming [2026]: Brunner, TPD, and IDR State-specific rules, federal court data, and practical guidance for Wyoming residents. Student Loan Discharge in Wyoming Wyoming sits in the Tenth Circuit, which applies the Brunner three-prong test. Each prong must be proven by a preponderance of the evidence in an adversary proceeding. Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). To discharge them, the debtor must file an adversary proceeding within the bankruptcy case and prove undue hardship under the test applied in the Tenth Circuit. The Tenth Circuit Brunner Standard Applies Brunner. In re Woodcock, 45 F.3d 363 (10th Cir. 1995). Recent panels have loosened the good-faith prong; see McDaniel v. Navient (2020) on tuition-vs-educational distinction. Brunner (where it applies) requires the debtor to prove: Minimal standard of living. That the debtor cannot maintain a minimal standard of living for themselves and dependents if forced to repay the loans. Persistence. That additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period. Good faith. That the debtor has made good faith efforts to repay the loans (including IDR/IBR enrollment, forbearances attempted, and payment history). See the full Brunner test explanation. DOJ/DOE Attestation Process (Nov 2022) In November 2022, the Department of Justice and Department of Education issued joint guidance that streamlines student loan discharge for federal loans. The guidance applies in every federal court, including those in Wyoming, and has materially increased discharge success rates. Under the attestation process: The debtor completes a standardized DOJ attestation form documenting income, expenses, and repayment history. The DOJ reviews the attestation and, in most cases, supports discharge rather than contesting. The underlying Brunner/totality analysis is applied, but with DOJ alignment. The U.S. Trustee in Wyoming processes adversary proceedings consistent with this guidance. See adversary proceeding mechanics. Wyoming Disability and TPD Discharge Limited state programs; federal TPD primary path. For Social Security Disability Insurance (SSDI) or Social Security Supplemental Security Income (SSI) recipients, federal loans qualify for Total and Permanent Disability (TPD) discharge without bankruptcy. TPD is administrative - no adversary proceeding needed - and applies to federal Direct, FFEL, and Perkins loans. Three TPD qualification paths: VA determination - Service-connected disability rated 100% or Individual Unemployability. SSA determination - SSDI or SSI approval with a 5-7 year scheduled review flag. Physician certification - M.D. or D.O. certifies that a medical impairment prevents substantial gainful activity. TPD is the first path to check for any Wyoming debtor with a disability. Bankruptcy discharge is the fallback when TPD is unavailable or for private loans. Wyoming Income-Driven Repayment Baseline Before filing an adversary proceeding, most courts in the Tenth Circuit require the debtor to show they have attempted income-driven repayment (IDR). Low volume; 10th Cir. Brunner; rural service programs supplement. Federal IDR plans available: SAVE (formerly REPAYE) - 5-10% of discretionary income; lowest monthly payments for most debtors. PAYE - 10% of discretionary income; 20-year forgiveness. IBR - 10-15% of discretionary income; 20-25 year forgiveness. ICR - 20% of discretionary income or 12-year standard, whichever less. A Wyoming debtor at poverty-line income typically has a $0 monthly IDR payment under SAVE. This is important for the Brunner good-faith prong: you must show you tried IDR, not that IDR was impossible. Private Student Loans in Wyoming Private student loans are treated differently. Under the 10th Circuit's McDaniel v. Navient, 973 F.3d 1083 (10th Cir. 2020), and similar reasoning in other circuits, a "qualified education loan" under 523(a)(8)(B) requires the funds to have been used solely for qualified educational expenses. Loans for living expenses, test preparation, or bar study may be dischargeable without proving undue hardship. For Wyoming debtors with private loans: Direct-to-consumer (DTC) loans - often exceed "cost of attendance" and may be fully dischargeable. Bar study loans - typically dischargeable under In re Campbell / McDaniel reasoning. Mixed-use loans - fact-specific; the burden is on the creditor to prove qualified-loan status. See private student loan dischargeability. Wyoming Chapter 13 and Student Loans In Chapter 13, student loans are generally paid pro-rata with other unsecured debt through the plan under 11 U.S.C. Section 1322(b)(1). The debtor may still file an adversary proceeding for discharge on undue hardship grounds, either during the case or after plan completion. Practical advantages of the Chapter 13 path in Wyoming: The automatic stay halts collection during the 3-5 year plan. Accrued interest may be reduced through plan treatment. A post-plan discharge adversary may succeed where a pre-plan one would not, because a completed plan is strong good-faith evidence. See Chapter 13 and student loans. Attorney Fees for Wyoming Adversary Proceedings Student loan adversary proceedings carry fees in addition to the base Chapter 7 or 13 attorney fee. Typical Wyoming range: $2,000-$6,000 depending on case complexity and whether the loan holder contests discharge. Under 11 U.S.C. Section 329(b), the bankruptcy court may review any attorney fee paid "in connection with" the case, including adversary-proceeding fees. Any fee paid for student loan litigation must be disclosed under Rule 2016(b) and is subject to the reasonableness standard. See Section 329 fee disgorgement overview. Related Wyoming Resources Brunner test explained Adversary proceeding mechanics Chapter 13 and student loans Private student loans Income-driven repayment Student loan bankruptcy FAQ Wyoming bankruptcy exemptions Section 329 fee disgorgement Foundational Caselaw The cases below define the doctrine on this site: Brunner v. New York State Higher Educ. Servs. Corp., 831 F.2d 395 (2d Cir. 1987) - origin of the three-prong undue-hardship test (per curiam). McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020) - private student loans outside Section 523(a)(8) scope. Rosenberg v. New York State Higher Educ. Servs. Corp., 610 B.R. 454 (S.D.N.Y. 2020) - seminal post-Brunner critique; catalyst for the 2022 DOJ attestation guidance. Long v. Educational Credit Mgmt. Corp., 322 F.3d 549 (8th Cir. 2003) - totality-of-circumstances alternative. Browse Every State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming Part of the Open Bankruptcy Project - free, open-source bankruptcy information. This is educational information, not legal advice. Brunner · Adversary · Private Loans · Chapter 13 · FAQ Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 --- ## Additional FAQ Pages ### Can I discharge student loans in bankruptcy? - Student Loans in Bankruptcy Source: https://bankruptcystudentloans.org/paa/can-i-discharge-student-loans-in-bankruptcy.html Skip to content bankruptcystudentloans.org Home Questions Home › Common Questions › Can I discharge student loans in bankruptcy? People Also Ask Can I discharge student loans in bankruptcy? Yes, but it requires filing a separate lawsuit called an adversary proceeding within your bankruptcy case. You must prove that repaying the loans would cause 'undue hardship.' Recent DOJ guidance has made this easier, and courts are increasingly willing to discharge student loans, especially for borrowers with health issues or low earning potential. Student loan discharge in bankruptcy is harder than discharging other debts, but it is not impossible - and it is getting easier. The Adversary Proceeding Unlike credit cards or medical bills, student loans are not automatically discharged when you file bankruptcy. You must file a separate adversary proceeding (essentially a lawsuit within your bankruptcy case) specifically asking the court to discharge your student loans. This requires filing a complaint, serving it on the lender, and potentially going to trial. The Undue Hardship Standard Most courts use one of two tests: Brunner Test: Used by most circuits. You must show (1) you cannot maintain a minimal standard of living and repay the loans, (2) your financial situation is likely to persist for a significant part of the repayment period, and (3) you have made good faith efforts to repay. Totality of Circumstances: Used by the 8th Circuit and gaining traction elsewhere. The court looks at your complete financial picture without rigid prongs. 2023 DOJ Guidance The Department of Justice issued new guidance in 2023 directing government attorneys to consent to discharge in cases where the borrower clearly meets the undue hardship standard. This has led to more settlements and fewer contested cases, reducing the cost and difficulty for borrowers. Who Has the Best Chance? Borrowers with disabilities, chronic health conditions, older borrowers with limited earning potential, and those with private student loans (which lack income-driven repayment options) have the strongest cases. But even younger borrowers with federal loans have succeeded when their financial circumstances are genuinely dire. Related Guides Index Brunner Test Adversary Proceeding Part of the Open Bankruptcy Project Real information, no strings. 1328f.com 1328f.org openbankruptcyproject.org ♥ Donate Free bankruptcy education. Not legal advice. Consult a qualified attorney for your specific situation. A project of the Open Bankruptcy Project, a 501(c)(3) public charity (EIN 41-5159631). Privacy | Terms Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 ### Can private student loans be discharged in bankruptcy? - Student Loans in Bankruptcy Source: https://bankruptcystudentloans.org/paa/can-private-student-loans-be-discharged-in-bankruptcy.html Skip to content bankruptcystudentloans.org Home Questions Home › Common Questions › Can private student loans be discharged in bankruptcy? People Also Ask Can private student loans be discharged in bankruptcy? Private student loans face the same 'undue hardship' standard as federal loans, but borrowers may have a stronger case because private loans lack income-driven repayment options, deferment programs, and Public Service Loan Forgiveness. Courts increasingly recognize that the absence of these protections supports a finding of undue hardship. Private student loans are treated the same as federal loans under the Bankruptcy Code, but the practical arguments for discharge can be stronger. Why Private Loans May Be Easier to Discharge Federal student loans come with numerous repayment alternatives: income-driven repayment (IDR), deferment, forbearance, Public Service Loan Forgiveness (PSLF), and disability discharge. Private loans offer few or none of these options. Courts have recognized that the lack of repayment flexibility supports a finding of undue hardship. Additional Arguments for Private Loan Discharge Private loans often carry higher interest rates (8-15% vs. 5-7% for federal) Some private loans were made to students at schools that provided little value or later closed Co-signer disputes and aggressive collection practices may support bad-faith arguments against lenders Many private lenders lack proper documentation of the original loan terms The Bar Program Exception Some private educational loans may not actually qualify for the bankruptcy discharge exception under Section 523(a)(8). The statute requires that the loan be a "qualified education loan" under the Internal Revenue Code. Loans that exceed the cost of attendance, loans to non-accredited schools, or certain refinanced loans may not meet this definition - making them dischargeable without proving undue hardship at all. If you have private student loans and are considering bankruptcy, it is worth consulting an attorney who specializes in student loan discharge. The legal landscape has shifted significantly in borrowers' favor. Related Guides Private Loans Brunner Test Adversary Proceeding Part of the Open Bankruptcy Project Real information, no strings. 1328f.com 1328f.org openbankruptcyproject.org ♥ Donate Free bankruptcy education. Not legal advice. Consult a qualified attorney for your specific situation. A project of the Open Bankruptcy Project, a 501(c)(3) public charity (EIN 41-5159631). Privacy | Terms Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 ### Common Questions - Student Loans in Bankruptcy Source: https://bankruptcystudentloans.org/paa/index.html bankruptcystudentloans.org Home Questions Common Questions Clear, data-backed answers to the most frequently asked questions Can I discharge student loans in bankruptcy? What is the Brunner test for student loans? Can private student loans be discharged in bankruptcy? Understanding Your Bankruptcy Options Bankruptcy law provides several paths to financial relief, each designed for different situations. Chapter 7 offers a fresh start through liquidation of non-exempt assets and discharge of qualifying debts, typically completed in 3 to 6 months. Chapter 13 allows you to keep your property while repaying debts over 3 to 5 years. Chapter 11 provides reorganization options for businesses and high-debt individuals. Understanding which chapter fits your situation requires analyzing your income, assets, debts, and financial goals. Frequently Asked Questions What are the different types of bankruptcy? The most common types are Chapter 7 (liquidation for individuals and businesses), Chapter 13 (repayment plan for individuals with regular income), and Chapter 11 (reorganization for businesses). Each chapter has different eligibility requirements, timelines, and outcomes. A bankruptcy attorney or legal aid organization can help determine which option fits your situation. How much does it cost to file bankruptcy? Court filing fees are $338 for Chapter 7 and $313 for Chapter 13 as of 2026. Attorney fees vary by location and complexity but typically range from $1,000 to $2,500 for Chapter 7 and $2,500 to $5,000 for Chapter 13. Fee waivers are available for filers below 150% of the federal poverty guidelines. Will bankruptcy stop creditor calls and lawsuits? Yes. The automatic stay under 11 U.S.C. Section 362 takes effect immediately when you file and stops most collection activities, including phone calls, letters, lawsuits, wage garnishments, and foreclosure or repossession actions. Creditors who violate the stay can be held in contempt of court. Part of the Open Bankruptcy Project 1328f.com openbankruptcyproject.org Free bankruptcy education. Not legal advice. Consult a qualified attorney for your specific situation. Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5 ### What is the Brunner test for student loans? - Student Loans in Bankruptcy Source: https://bankruptcystudentloans.org/paa/what-is-the-brunner-test-for-student-loans.html Skip to content bankruptcystudentloans.org Home Questions Home › Common Questions › What is the Brunner test for student loans? People Also Ask What is the Brunner test for student loans? The Brunner test is a three-part legal standard that courts use to determine if student loans can be discharged in bankruptcy. You must prove: (1) you cannot maintain a minimal standard of living and repay the loans, (2) your financial hardship is likely to persist, and (3) you have made good-faith efforts to repay. The Brunner test comes from the 1987 case Brunner v. New York State Higher Education Services Corp. and remains the dominant standard in most federal circuits. The Three Prongs Prong 1: Current Inability to Pay You must demonstrate that based on your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents while repaying the student loans. "Minimal standard of living" does not mean poverty - courts have recognized that basic necessities include housing, food, utilities, transportation, and healthcare. Prong 2: Persistence of Hardship You must show that additional circumstances exist indicating your financial situation is likely to persist for a significant portion of the remaining repayment period. This is often demonstrated through age, disability, chronic health conditions, limited education or skills, or a depressed job market in your field. Prong 3: Good Faith Effort You must show that you have made good faith efforts to repay the loans. This does not require perfect payment history. Enrolling in income-driven repayment plans, making some payments, communicating with servicers, and exploring repayment options all demonstrate good faith. Criticism and Reform The Brunner test has been widely criticized as too rigid. Some courts have moved to a more flexible "totality of the circumstances" approach. The 2023 DOJ guidance has also softened enforcement. The legal landscape is shifting in borrowers' favor, and more attorneys are willing to take these cases than ever before. Related Guides Brunner Test Index Undue Hardship Part of the Open Bankruptcy Project Real information, no strings. 1328f.com 1328f.org openbankruptcyproject.org ♥ Donate Free bankruptcy education. Not legal advice. Consult a qualified attorney for your specific situation. A project of the Open Bankruptcy Project, a 501(c)(3) public charity (EIN 41-5159631). Privacy | Terms Our research was cited by the federal judiciary as Suggestions 26-BK-3 and 26-BK-5