📘 Understanding Bankruptcy Options for Student Loans
When considering how to resolve student loan debt, Bankruptcy usually isn’t the first option anyone thinks of. Common wisdom, which isn’t entirely accurate, suggests that “you can’t include student loans in bankruptcy.” Still, in some situations, Bankruptcy can be a powerful solution to problems with student loan debts.
🏛️ What is an Adversary Proceeding?
An adversary proceeding is a lawsuit within a bankruptcy case that addresses issues related to the bankruptcy, such as whether certain debts can be discharged. To wipe out your student loans in Chapter 7 Bankruptcy, you need to prove that repaying them would create an “undue hardship.”
📋 Most courts, including those in Nevada, apply the Brunner Test, which requires showing:
📅 What Has Changed in 2025?
Until recently, courts demanded proof of “exceptional hardship” — a nearly impossible standard. However, the test now is whether repayment prevents you from maintaining a minimal standard of living.
Why Legal Help is Important
Bankruptcy law is complicated. From filing deadlines to courtroom strategy, a student loan attorney can:
With the right guidance, bankruptcy becomes less intimidating and far more effective.
What Does Filing for Bankruptcy Cost?
Attorney fees for an Adversary Proceeding to eliminate student loans in bankruptcy usually range from $1,000 to $3,500. Those fees are in addition to the legal fees and costs associated with filing for bankruptcy. While that sounds steep, the reality is this:
👉 If you qualify under the Brunner Test, eliminating tens of thousands in student loan debt often outweighs the upfront cost.
Is Bankruptcy Right for You?
Bankruptcy can:
However, Bankruptcy is not a decision to be made lightly. If you’re unsure, talking to a student loan attorney is the best way to weigh the risks and rewards for your unique situation.
📌 Attorney’s sidebar: Timing is Everything
Bankruptcy is not for everyone. Even with today’s higher success rates, filing too soon or without guidance could cost you time and money. A student loan attorney can:
💡 Attorney’s Sidebar: Why Waiting Costs More
Every month you delay, your loan balance increases due to interest and fees. For many borrowers, this adds up to thousands of dollars lost each year. Exploring bankruptcy now — or at least running a $90 software analysis — can reveal whether you’re leaving money on the table.
About Attorney Dorothy.
