Student Loan Relief May Be Possible
Free Student Loan Review
Student loans can be complicated, especially when you are trying to determine which repayment, forgiveness, settlement, or bankruptcy-related options may apply to your situation. Get guidance on student loan bankruptcy and other available relief options. We’ll review your situation and explain whether bankruptcy or another legal strategy may help.
At Bay to Bay Bankruptcy Law, we take the time to review the details of your loans and help you understand the options that may be available based on your individual circumstances.
Start Your Free Review
To begin:
1. Visit our Student Loan Toolbox: CLICK HERE
2. Create your account using your contact information.
3. Complete the student loan intake questionnaire.
The information you provide will allow our office to take a closer look at your loan situation before speaking with you.
After your intake is submitted, our team will review your information and contact you within 1 business days to discuss possible next steps. There is no charge for this initial review.
Get Clarity on Your Student Loans
Our goal is to help you understand where you currently stand, what options may be worth considering, and what steps may make sense moving forward.
Whether you are dealing with high monthly payments, delinquency, default, collections, repayment concerns, or questions about how student loans may be treated in bankruptcy, the first step is understanding your specific loan situation.
Complete your free student loan review today and let our office help you evaluate your options.
Ready to take the next step?
Under 11 U.S.C. § 523(a)(8), student loans are generally not automatically discharged in bankruptcy unless the debtor proves that repayment would impose an undue hardship on the debtor and the debtor’s dependents. This means that simply filing Chapter 7 or Chapter 13 is usually not enough to eliminate student loans. A student loan bankruptcy attorney can help evaluate whether your circumstances may meet the legal requirements for relief.
Florida Uses the Brunner Undue Hardship Standard
Florida bankruptcy courts are part of the Eleventh Circuit. In the Eleventh Circuit, courts apply the Brunner test to determine whether student loans create an undue hardship. Under the Brunner test, the debtor must generally show:
- The debtor cannot maintain a minimal standard of living if forced to repay the student loans;
- The debtor’s financial hardship is likely to continue for a significant portion of the repayment period; and
- The debtor has made good-faith efforts to repay the loans.
This is a difficult standard, but it is not impossible. Courts look at the debtor’s real financial situation, including income, expenses, dependents, health, age, employment history, future earning ability, and efforts made to address the loans.
In In re Mosley, the Eleventh Circuit affirmed the discharge of student loans where the debtor showed severe financial hardship, limited ability to work, and good-faith efforts despite not being able to make payments. The court also explained that failure to make payments alone does not automatically mean a debtor acted in bad faith.
In In re Acosta-Conniff, the Eleventh Circuit explained that part of the Brunner test is forward-looking. The court stated that when reviewing whether the hardship is likely to continue, the focus should be on the debtor’s future ability to repay, not simply blaming the debtor for past financial decisions.
Florida bankruptcy courts have also recognized that student loans may be discharged when the debtor meets the undue hardship standard. For example, in In re Wolfe, a bankruptcy court in the Middle District of Florida granted a discharge of student loan debt after finding that the debtor satisfied the Brunner test.
Student Loans Require an Adversary Proceeding
Student loans are not usually wiped out through the regular bankruptcy paperwork. To request a student loan discharge, the debtor must usually file a separate lawsuit inside the bankruptcy case called a student loan adversary proceeding.
An adversary proceeding asks the bankruptcy judge to decide whether repayment of the student loans would cause undue hardship. This process may involve reviewing student loan records, income, expenses, tax returns, medical issues, household size, employment history, and other evidence.
The student loan creditor or government agency has the opportunity to respond. Some cases may be resolved by agreement. Others may require hearings, evidence, or a trial before the bankruptcy judge.
Recent Federal Guidance May Help Some Borrowers
For federal student loans, the Department of Justice and Department of Education have created a more standardized process for reviewing student loan discharge requests in bankruptcy. This does not mean student loans are automatically discharged, but it may make the process more organized in cases involving federal loans.
The debtor may need to complete an attestation form and provide detailed financial information. The government then reviews whether it will agree that the debtor meets the undue hardship standard.
Student Loan Adversary Proceedings Cost Extra
Because a student loan adversary proceeding is a separate lawsuit within the bankruptcy case, it is not included in the standard Chapter 7 or Chapter 13 attorney’s fee.
Bay to Bay Bankruptcy Law handles student loan adversary proceedings for eligible clients. During your consultation, we can review your student loans, explain whether an adversary proceeding may be worth pursuing, and discuss the additional attorney’s fees and costs involved.
Frequently Asked Questions
Please reach us at Info@baytobaybk.com if you cannot find an answer to your question.
Schedule a Free Consultation
If student loan debt is keeping you from moving forward, bankruptcy may provide more options than you realize. Book a free consultation with Bay to Bay Bankruptcy Law to discuss your bankruptcy options and whether a student loan adversary proceeding may be appropriate for your situation.