Weirton, West Virginia Student Loan Discharge Lawyers

Can student loans be discharged in bankruptcy?

Yes, despite the common myth that they can't. The "Brunner test" (or in some courts, a totality-of-circumstances test) evaluates whether repaying loans would impose undue hardship. The Department of Justice issued updated guidance in 2022 making it easier for government attorneys to agree to discharge. An increasing number of borrowers are successfully discharging student loans — but you must affirmatively file an adversary proceeding within your bankruptcy case.

What is a borrower defense claim?

If your school engaged in fraud or certain misconduct — misrepresenting job placement rates, program accreditation, or the cost of attendance — you may be eligible for loan discharge through the borrower defense to repayment program. This applies to federal Direct Loans and can result in partial or full forgiveness regardless of bankruptcy. Processing times have been long, but policy changes have accelerated reviews.

What about income-driven repayment plan issues?

If your loan servicer miscounted qualifying payments toward forgiveness, placed you in forbearance instead of an IDR plan, or failed to process your application correctly, you may have been harmed by servicer misconduct. Legal action can compel servicers to correct payment counts. The SAVE plan and other IDR programs cap payments at a percentage of discretionary income and forgive remaining balances after 20-25 years.