Discharging student loans in bankruptcy has been nearly impossible since the 1990s. Anyone attempting to meet the “undue hardship” the law requires ran into the wall of the Department of Justice attorneys and nearly always got shot down..
However, President Biden recently ordered the Justice Department to not fight so hard. You still have to show an “undue hardship”, but if your situation is considered bad enough, the Department of Justice now may not fight it. This only applies to Federal Student Loans, not private loans, but is is a big step in the right direction.
The Department of Justice has provided a form to help you make your argument. I am providing a downloadable copy here to help you prepare your argument, if you need it. Just click on the link here and you can download it. Student Loan Discharge Guidance Form
There is also an excellent documentary to help you understand how this problem came about, and who was responsible. It is called “Loan Wolves” and is available on Peacock. Here is a link to the program: Loan Wolves Documentary
My name is Timothy C Springer. I am a Fresno Bankruptcy Attorney with over 22 years of experience with bankruptcy issues. I service clients in the following counties: Fresno, Kings, Tulare, Merced, Madera, and Mariposa. If you live in any of these counties you would have to file your case in the Federal Court located in Fresno.
While it is still not easy to get rid of student loans in bankruptcy, this development at least gives us a good faith argument that we can make to the court. This is much better than what we had just a few weeks ago.
If you have other general questions about bankruptcy, you can click on this link “Common Bankruptcy Questions” and it will take you to a list of questions and answers explaining bankruptcy in detail. Or you can call for a free consultation to explore your options at: