The Student Loan Adversary Proceeding
Student loans aren't discharged automatically. Rule 7001(6) requires a separate lawsuit inside your case. Here's the whole sequence, filing to discharge.
The adversary proceeding
Philadelphia & South Jersey
Student Loan Discharge Lawyer
Student loan discharge is the bankruptcy process that can wipe out some or all of your student loans if you prove undue hardship (that repaying is beyond your means). It sometimes works: since late 2022 the path for federal loans is more realistic than before, while private loans face a tougher road. We'll tell you which track you're on, and what bankruptcy can do for you either way.
Two kinds of loans, two different roads
Nearly every student loan discharge runs through the same gate: section 523(a)(8) of the Bankruptcy Code requires you to prove undue hardship in a separate lawsuit called an adversary proceeding. In Pennsylvania and New Jersey, courts measure hardship with the Third Circuit's Brunner test: can you maintain a minimal standard of living while repaying, is your situation likely to persist, and have you made a good-faith effort to repay. For federal loans, guidance the Justice Department and Education Department issued in November 2022 turned those questions into a standardized attestation the DOJ can agree to, so many federal cases now resolve by agreement instead of a courtroom fight. Private loans get no attestation shortcut, though some may fall outside section 523(a)(8) entirely, which we evaluate case by case. And when discharge isn't realistic, there's a practical play that often is: bankruptcy can clear the rest of your debt so the student loan payment finally fits in your budget.
Can federal student loans really be discharged?
- Undue-hardship discharge under section 523(a)(8), through an adversary proceeding
- The 2022 DOJ and Education Department attestation process, for federal loans only
- We build the record and complete the attestation the DOJ reviews
- The DOJ can agree to a discharge, so many cases settle
What about private student loans?
- Same undue-hardship gate, but no attestation shortcut
- The Third Circuit's Brunner test applies, and all three prongs must be met
- Some private loans may fall outside section 523(a)(8) entirely; we check, case by case
- Plan B that often works: discharge your other debt so the loan becomes payable
The Student Loan Discharge Roadmap
Every step from your first call to a decision on your loans.
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1
Step 1 of 9
Free consultation
Phone or Zoom, zero obligation. We review your loans, your income, and what you have already tried.
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2
Step 2 of 9
We sort federal from private
We identify the type and status of every loan you carry. Federal loans can use the DOJ attestation path. Private loans face the tougher Brunner route, and a few may fall outside the student-loan exception entirely.
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3
Step 3 of 9
The undue-hardship review
We measure your income, expenses, and circumstances against the Brunner test and the current DOJ guidance, so you know where you stand before anything gets filed.
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4
Step 4 of 9
We file your bankruptcy
Chapter 7 or Chapter 13, whichever fits your situation. This opens the door to discharging the loans.
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Step 5 of 9
We file the adversary proceeding
The separate lawsuit inside your bankruptcy that actually asks the court to wipe out the student loans.
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6
Step 6 of 9
The attestation form
We complete the government's standardized form documenting your income, expenses, and hardship. This is what the DOJ reviews, and it applies to federal loans only.
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Step 7 of 9
DOJ and lender review
The Department of Justice and your loan holder review your attestation and decide whether to agree to a discharge.
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8
Step 8 of 9
Negotiation or hearing
Many cases settle by agreement. If yours needs it, we argue your case in front of the judge.
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9
Step 9 of 9
Discharge
If you prevail, the court wipes out some or all of the loans. A real fresh start.
Related guides
Private Student Loans in Bankruptcy
Some private student loans can be wiped out without proving undue hardship, if they fall outside § 523(a)(8). Whether yours does turns on the loan documents.
Private loansThe DOJ Attestation Process
Since November 2022, a DOJ attestation form has made federal student loan discharge genuinely reachable. How the process works and what it asks for.
The DOJ processDischarging Student Loans in Bankruptcy
Yes, but the standard is demanding. How § 523(a)(8) and the Third Circuit's Brunner test decide whether your student loans can be discharged.
Can you discharge them?Common questions about Student Loan Discharge
Can student loans really be discharged in bankruptcy?
Sometimes, yes. Section 523(a)(8) makes student loans harder to discharge than other debt: you have to prove undue hardship in a separate lawsuit called an adversary proceeding. For federal loans, guidance the DOJ and the Education Department issued in November 2022 created a standardized attestation process that's made discharge genuinely reachable for borrowers in real hardship. Private loans face the same gate without the shortcut. No one can promise a discharge, but we can tell you quickly whether your facts fit.
What counts as undue hardship?
In Pennsylvania and New Jersey, courts apply the Third Circuit's Brunner test, and you need all three prongs: you can't maintain a minimal standard of living while repaying, your situation is likely to persist, and you've made a good-faith effort to repay. For federal loans, the attestation process turns those three questions into a form we know how to build a record for.
What about private student loans?
They're harder. There's no attestation shortcut, so a private-loan discharge means proving all three Brunner prongs the traditional way. That said, some private loans may not be qualified education loans at all, for example money lent beyond the cost of attendance or for a non-eligible school, and those can fall outside section 523(a)(8). It's a case-by-case argument, never a promise, and it's worth checking.
Do I have to file bankruptcy to discharge my loans?
Yes. The discharge happens inside a Chapter 7 or Chapter 13 case, through a separate filing called an adversary proceeding. We handle both, start to finish.
What if my loans can't be discharged?
Bankruptcy can still change everything. Wiping out the credit cards, medical bills, and personal loans often frees up enough room in your budget that the student loan payment finally fits. For a lot of people, that's the real win.
What does it cost to find out where I stand?
Nothing. The consultation is free, by phone or Zoom, and we'll tell you which track your loans are on before you commit to anything.