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Links to guidance from the Department of Justice on federal student loan relief in bankruptcy and related documents are available here. The Department's New Process for Student Loan Bankruptcy Discharge Cases.
The new process will help ensure transparent and consistent expectations for the discharge of student loan debt in bankruptcy; reduce the burden on debtors of pursuing such proceedings; and make it easier for Justice Department attorneys to identify cases where discharge is appropriate.
Yes, it is possible to file for bankruptcy on student loans and "discharge" or erase student loan debt. But you must be able to prove to a bankruptcy judge that repaying your student loans would cause you undue hardship.
The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But...
“Today’s guidance outlines a better, fairer, more transparent process for student loan borrowers in bankruptcy,” said Associate Attorney General Vanita Gupta. “It will allow Justice Department attorneys to more easily identify cases in which we can recommend discharge of a borrower’s student loans.
WASHINGTON — The Justice Department, in close coordination with the Department of Education, announced today the continued and growing success of a process instituted in November 2022 for handling cases in which individuals seek to discharge their federal student loans in bankruptcy.
The guidance “outlines a better, fairer, more transparent process for student loan borrowers in bankruptcy,” Associate Attorney General Vanita Gupta said in a statement.
On November 17, 2022, the Department of Justice (DOJ) announced a new process for handling the discharge of federal student loans in bankruptcy cases. The DOJ's process will help ensure consistency across loan discharges, reduce the burden on student loan debtors, and make it easier to identify cases where discharge is appropriate.
Student Loan Forgiveness Through Bankruptcy. The current bankruptcy code makes it difficult (although not technically impossible) to discharge student loan debt. Student loans are treated...
To file for student loan bankruptcy, you will first need to file for Chapter 7 or Chapter 13 bankruptcy. You will then need to file an adversary proceeding (AP) to have your student...