Student Loan Bankruptcy

One of the most common questions we receive is, “can I get rid of my student loans?” Unfortunately, the answer to that question is usually no. There are, however, options available to those that are struggling with their student loans.

Get help from a Wisconsin Student Loan Bankruptcy Lawyer

If you are trying to discharge your student loans through bankruptcy in Wisconsin, , the court requires that you show the payment of the debt “will impose an undue hardship on you and your dependents.” The most common test used by the bankruptcy court is the Brunner test which requires a showing that 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans. (Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987).

Many times, we have clients approach us saying that they can meet these requirements and believe that they should pursue this route. However, the standard of living the court is referencing is income that hovers around the poverty line. On top of that, the court requires that you show this level of income is more than likely not going to change. There are multiple factors the court will also take into consideration, including where there was no benefit from the education paid for as well as other options available to those that work in the public sector. As you can imagine, this standard is difficult to meet, but it is not impossible.