Nondischargeable Debts

The Brunner Test

Most courts use the Brunner test for student loan discharge: (1) you cannot maintain a minimal standard of living if forced to repay, (2) your circumstances are likely to persist for a significant portion of the repayment period, (3) you have made good faith efforts to repay the loans.

All three prongs must be met. The test is notoriously difficult to satisfy, but not impossible.

Evolving Standards

Some courts are moving away from strict Brunner in favor of a "totality of circumstances" test that considers the full picture of the debtors financial situation. The Department of Justice issued guidance in 2022 encouraging a less restrictive approach.

Filing an adversary proceeding is required. Many debtors never attempt it because they assume discharge is impossible. Recent data suggests success rates are higher than commonly believed for those who actually file.

Practical Steps

You must file a separate adversary proceeding within the bankruptcy case. The student loan creditor is named as defendant. The court holds a trial or the parties negotiate a settlement (partial discharge, reduced balance, or modified terms).