Can student loans be discharged in bankruptcy?

Student loans are extremely difficult to discharge. Under Section 523(a)(8), student loans are not discharged unless the debtor files a separate adversary proceeding and proves that repayment would impose an 'undue hardship.' Most courts use the Brunner test, which requires showing: (1) inability to maintain a minimal standard of living while repaying, (2) the hardship is likely to persist, and (3) good faith effort to repay. This is a very high standard, though some courts have recently become more willing to grant student loan discharges.

What Debts Cannot Be Discharged in Bankruptcy?

Q: What debts cannot be discharged in bankruptcy?

Under Section 523 of the Bankruptcy Code, certain debts survive bankruptcy and cannot be discharged. The most common non-dischargeable debts are: student loans (unless undue hardship is proven), recent income taxes (generally within the last 3 years), child support and alimony (domestic support obligations), debts obtained through fraud or false pretenses, debts from willful and malicious injury, government fines and penalties, DUI/DWI injury debts, and criminal restitution.

Student loans, recent taxes, child support, fraud debts, and criminal fines survive bankruptcy under Section 523.

Overview

Section 523 of the Bankruptcy Code lists specific categories of debts that cannot be discharged -- meaning they survive the bankruptcy and must still be paid. These exceptions apply in both Chapter 7 and Chapter 13, though Chapter 13 discharges a few additional types of debts (the "super discharge").

Categories of non-dischargeable debts

Debt Type	Code Section	Notes
Recent income taxes	523(a)(1)	Taxes due within last 3 years; tax returns filed late within last 2 years; fraudulent returns
Student loans	523(a)(8)	Unless "undue hardship" proven in adversary proceeding
Child support and alimony	523(a)(5)	Domestic support obligations are never dischargeable
Fraud debts	523(a)(2)	Debts obtained by false pretenses, false representation, or actual fraud
Willful and malicious injury	523(a)(6)	Debts from intentional harm to person or property
Government fines/penalties	523(a)(7)	Fines, penalties, or forfeitures payable to government
DUI/DWI injury debts	523(a)(9)	Death or personal injury caused by intoxicated driving
Criminal restitution	523(a)(13)	Restitution ordered in criminal proceedings
Debts not listed	523(a)(3)	Debts not scheduled in time for creditor to file proof of claim (in some cases)
HOA/condo fees post-filing	523(a)(16)	Fees accruing after filing for property you own

Student loans: the undue hardship standard

Student loans are the most commonly discussed non-dischargeable debt. To discharge student loans, you must file a separate lawsuit (adversary proceeding) within the bankruptcy case and prove "undue hardship." Most courts apply the Brunner test, which requires showing:

You cannot maintain a minimal standard of living while repaying the loans
Your financial situation is likely to persist for a significant portion of the repayment period
You have made good-faith efforts to repay

Evolving standards

The Department of Justice issued guidance in 2022 directing U.S. Attorneys to apply a more flexible standard when evaluating student loan discharge cases. Some courts have moved away from the strict Brunner test. The landscape is changing, but student loan discharge remains difficult in most jurisdictions.

Tax debts: the 3-year / 2-year / 240-day rules

Income tax debts may be dischargeable if all of the following conditions are met:

The tax return was due more than 3 years before filing (including extensions)
The return was filed more than 2 years before filing
The tax was assessed more than 240 days before filing
The return was not fraudulent and the debtor did not willfully evade the tax

Taxes that do not meet all four conditions survive bankruptcy.

Chapter 13 super discharge

Chapter 13 can discharge a few types of debts that Chapter 7 cannot, including certain willful and malicious property damage debts and debts from property settlements in divorce. This broader discharge -- called the "super discharge" -- is one reason some debtors choose Chapter 13 even when they qualify for Chapter 7.

Creditor objections

Some exceptions (like fraud under 523(a)(2)) require the creditor to file a complaint and prove the debt is non-dischargeable. If the creditor misses the deadline to object, the debt is discharged even if it would otherwise qualify as non-dischargeable. Other exceptions (like student loans and taxes) apply automatically without any creditor action.

Learn more about what discharge means and how it works.

Dismissed vs. Discharged

Related resources

Section 523 -- Nondischargeable Debts -- The statute explained
What Is a Super Discharge? -- Chapter 13's broader discharge
Can Creditors Collect After Discharge? -- Your rights
After Chapter 7 Discharge -- Post-discharge guide
Chapter 7 Overview -- Liquidation basics

This page provides general information based on publicly available federal court records. It does not constitute legal advice. Consult a licensed attorney for advice on your specific situation.

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