Can student loans be discharged through Chapter 7 Bankruptcy?

In California, student loans are generally not able to be discharged through Chapter 7 Bankruptcy. This means that the student loans you owe will still be your responsibility to pay even after filing for Chapter 7 Bankruptcy. According to Bankruptcy Code 523(a)(8) in California, a debtor seeking to discharge student loans must demonstrate undue hardship. This is a difficult burden of proof as the courts take a very strict approach to this threshold. The U.S. Supreme Court has set a three-part test for a debtor to prove undue hardship, which is rarely satisfied. The test requires proof that you’ve made a good faith effort to pay your student loan debt, you can’t maintain a minimal standard of living if forced to repay the loans, and you have no reasonable expectation that your financial situation will improve in the foreseeable future. If you can demonstrate all three, then you may be able to discharge your student loans in California. In conclusion, while it is possible to discharge student loans through Chapter 7 Bankruptcy in California, it is a difficult process that few have success with. Before attempting to discharge your student loan debt, you should consult a lawyer to determine if you have a viable case.

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Can student loans be discharged through Chapter 7 Bankruptcy?

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