How to Discharge Student Loans in Bankruptcy

• 1). File for Chapter 7 bankruptcy. This type allows you to fully relieve yourself of debts without repayment. Make sure to hire an attorney with a solid record of successful bankruptcy decisions.
  
  
• 2). Collect all copies of credit card accounts and student loans. Collect at least 12 months of bank statements. Collect your employment documents proving your inability to repay debts.
  
  
• 3). Speak with your lawyer about the language of "undue hardship." In the court case Brunner vs. New York State Higher Education Servs. Corp. in 1987, the language was interpreted to mean: "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..."
  
  
• 4). Confirm your case is indeed one of "undue hardship." In most cases, this must mean that your financial situation is dire -- meaning you cannot maintain an acceptable standard of living -- and, due to circumstances out of your control, your situation is not likely to improve.
  
  
• 5). Collect evidence to support your "undue hardship" case. Without some form of documentation, a discharge of your student loans is unlikely.
  
  
• 6). Collect witnesses to testify on your behalf and who will corroborate your "undue hardship" argument.