Student loan relief
Student Loans and Bankruptcy in Utah
It is a common myth that student loans can never be discharged in bankruptcy. They can, but only if you prove that repaying them would impose an "undue hardship," which requires a separate lawsuit within your bankruptcy case called an adversary proceeding. We help borrowers evaluate whether they have a realistic case and pursue it when they do.
The short version
Student loan discharge is a separate part of bankruptcy: a court case asking that your federal or private loans be wiped out or reduced for undue hardship.
What "undue hardship" means
Courts generally look at three questions: whether you can maintain a minimal standard of living if forced to repay, whether your circumstances are likely to continue for a significant part of the repayment period, and whether you have made good-faith efforts to repay. Factors such as age, health, disability, income history and dependents all matter.
Federal agencies have adopted procedures in recent years intended to make these cases more consistent for federal loans. Results still depend heavily on the facts of each case.
Private student loans
Not every loan labeled a "student loan" receives special protection in bankruptcy. Some private loans may be dischargeable like ordinary debt. A careful review of your loan documents is the first step.
Already filed bankruptcy? You may still qualify
Many people with student loans went through bankruptcy without ever asking the court to look at those loans. If your bankruptcy case is closed, it can often be reopened for the limited purpose of filing a student loan discharge case.
Other ways bankruptcy helps borrowers
Even when student loans are not discharged, eliminating credit cards, medical bills and other debts can free up enough income to make an income-driven repayment plan workable. Chapter 13 can also give you breathing room from collection while other debts are reorganized.
The Student Loans in Bankruptcy process, step by step
Review your loans
We pull your federal loan history and review your income, expenses and repayment record to see whether an undue-hardship case is realistic.
Discharge analysis
You receive a written analysis of your situation and we go over it with you, so you know your chances before committing to more.
Reopen your bankruptcy, if needed
Already received a discharge and your case is closed? In many cases it can be reopened to pursue your student loans.
File the adversary proceeding
We file a separate lawsuit within your bankruptcy case asking the court to discharge or reduce your student loans.
Resolution
Cases end with a court decision or an agreement. The result can be a full discharge, a partial reduction, or no change.
Student Loans in Bankruptcy: common questions
Can student loans be discharged in bankruptcy?
Yes, if you prove that repayment would be an undue hardship through an adversary proceeding in your bankruptcy case. It is not automatic, and the outcome depends on your specific circumstances.
Are private student loans treated the same as federal loans?
Not always. Some private loans do not meet the legal definition of a protected student loan and may be dischargeable without proving undue hardship. Your loan documents need to be reviewed.
My bankruptcy is already closed. Is it too late?
Not necessarily. A closed bankruptcy case can often be reopened so you can ask the court to discharge your student loans. We will review your case and tell you whether reopening makes sense.
Does filing bankruptcy stop student loan collection?
The automatic stay generally pauses collection on student loans while your case is open, including wage garnishment, though the loans themselves remain unless discharged.
This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Results depend on the facts of each case. See our full bankruptcy FAQ.
Related services
- Chapter 7 BankruptcyWipe out credit cards, medical bills and personal loans, usually in a few months.
- Chapter 13 BankruptcyKeep your home and car with one affordable three-to-five-year plan, and stop foreclosure.
- Stop Wage GarnishmentStop creditors from taking your paycheck and end collection lawsuits with the automatic stay.
Talk to a Utah bankruptcy attorney for free
Every situation is different. A free consultation is the fastest way to learn which option fits yours. Ask about $0-down options.