Can You File Bankruptcy on Student Loans? Yes — Here's How (2026)

You can discharge federal and private student loans in bankruptcy. Your path depends on the loan: some require a separate lawsuit and proof of undue hardship; others may be covered by the ordinary bankruptcy discharge. The loan records and the law determine which path applies. A lender’s label, or the fact that your bankruptcy case closed, does not settle that question.

Discharge releases your legal obligation to repay a debt. For student loans covered by Section 523(a)(8), that relief generally requires an adversary proceeding, a separate lawsuit within your bankruptcy case, and proof of undue hardship.

Undue hardship means meeting your court’s legal test for why repayment would place too much strain on you and your dependents. Some private education debts fall outside Section 523(a)(8). Those debts may be covered by the ordinary discharge without proving undue hardship, although a dispute about the loan can still require a court ruling.

Your student-loan bankruptcy path

For a private loan, the records below help determine which private-loan row applies.

Health Education Assistance Loans (HEAL) have separate discharge rules and are outside this table. A medical-school loan is not necessarily a HEAL loan.

Records that help identify your path

This is a starting checklist for a loan review, not a list of documents every court requires. Different records answer different questions:

• Loan type and holder: Your StudentAid.gov loan details, current statements, and transfer notices help identify the program and who holds the debt. The servicer’s name alone does not establish the loan type.

• Private-loan terms: Your application, promissory note, disclosures, and available guaranty or program records help show what you borrowed for and how the loan was funded.

• School and loan-year records: Your school’s cost-of-attendance budget, account ledger, enrollment history, and aid award help test how the private loan was classified. Current school eligibility does not establish its status when you borrowed.

• Hardship evidence: Income records, household expenses, repayment history, and relevant health or employment records help explain your ability to repay now and in the future.

• A prior bankruptcy: The case number, schedules, discharge order, and any student-loan judgment help show what was decided and what remains open.

If your case has already closed, the next question is whether reopening or another court filing is required. The available path depends on the loan and the orders already entered.

The Department of Justice evaluates federal student loan discharge requests through a structured attestation process, announced in November 2022 to replace the previous approach where the government contested virtually every discharge request.

How it works. After a borrower files an adversary proceeding, the borrower’s attorney submits a completed attestation form and supporting documents to the DOJ attorney handling the case. The DOJ evaluates eligibility based on three categories: present financial circumstances, likelihood that hardship will continue, and past good faith efforts toward repayment. If the borrower meets the criteria, the DOJ can consent to full or partial discharge rather than litigating.

Which loans are covered. The DOJ review process applies to loans held by the Department of Education. Separate Education guidance permits FFEL guarantors and Perkins schools to use the DOJ framework when evaluating hardship. A federal loan held elsewhere is not automatically excluded from hardship relief, but its holder and procedures can differ. The FFEL and Perkins guidance explains that distinction.

Your private loan’s classification comes before the hardship question. A qualified education loan is generally debt incurred solely for qualifying higher-education expenses, subject to the conditions in Section 221(d)(1) of the tax code.

Failing that definition does not end the analysis. Section 523(a)(8) also covers certain loans made, insured, or guaranteed by the government, or made under a government- or nonprofit-funded program. Another category covers obligations to repay educational benefits, scholarships, or stipends. Coverage under any applicable category can trigger the hardship requirement.

A debt outside every category may be covered by the ordinary discharge. A dispute over classification can still require litigation. The private student-loan discharge guide explains the loan records and how classification affects both discharge and settlement options.

Both Chapter 7 and Chapter 13 allow adversary proceedings seeking student loan discharge. The chapter choice affects the surrounding case structure, not the discharge standard itself.

Student loans can be your only debt; eligibility for Chapter 7 or Chapter 13 still applies. A loan covered by Section 523(a)(8) generally requires a separate hardship lawsuit, while a private debt outside that section may be reached by the ordinary discharge.

Chapter 7. Chapter 7 does not use a repayment plan. The automatic stay generally pauses collection of debts you owed before filing, subject to exceptions. For collection against you, it can end when the court grants or denies your bankruptcy discharge, the case closes, or the case is dismissed, whichever happens first. A court can also grant earlier relief from the stay. A pending student-loan lawsuit does not, by itself, extend that protection.

Chapter 13. Chapter 13 uses a court-approved repayment plan, generally lasting three to five years. Collection protection has limits, and creditors can ask the court to lift a stay. A cosigner on qualifying consumer debt may receive temporary protection from collection under the co-debtor stay. That protection can be lifted to the extent your plan proposes not to pay that creditor’s claim.

The discharge standard is the same. Whether a borrower files Chapter 7 or Chapter 13, the undue hardship analysis applies identically. The chapter choice affects the protective structure around the borrower during litigation, not the likelihood of winning discharge.

Structural differences. Your chapter affects the repayment structure and available protection. Loan classification and, where required, the hardship analysis still determine whether your student loan can be discharged. Neither chapter guarantees that outcome.

Related: Practical questions: timeline, cost, credit and your spouse

An adversary proceeding is a separate lawsuit within your bankruptcy case. It is the usual route for seeking an undue-hardship discharge of a loan covered by Section 523(a)(8). It can also resolve a dispute about whether that section covers a private debt.

What it looks like in practice. The adversary proceeding has its own case number, filing, and timeline. It functions like a civil lawsuit — with a complaint, service of process, potential discovery, and either settlement or trial. The bankruptcy court handles both the main case and the adversary proceeding.

Why it exists. The lawsuit gives you and the creditor a way to present evidence about whether the student-loan exception applies and, when required, whether repayment would impose undue hardship. The bankruptcy court decides the dispute.

Cost considerations. Under the bankruptcy fee schedule, you do not pay an adversary-complaint filing fee when you are the Chapter 7 or Chapter 13 debtor bringing the case. Attorney fees and the costs of the main bankruptcy are separate. The practical guide to timing and costs explains those expenses.

The full process for how to file an adversary proceeding covers the procedural steps, deadlines, and documentation requirements.

A closed bankruptcy case does not eliminate the option to pursue student loan discharge. Borrowers who already completed a bankruptcy case — whether years ago or recently — can still file.

No statutory time limit. Courts have consistently held that an adversary proceeding to determine student loan dischargeability may be commenced at any time. A closed bankruptcy case may be reopened without payment of an additional filing fee to obtain a dischargeability determination.

The DOJ guidance covers reopened cases. For federal loans, the DOJ attestation process applies to cases filed on or after November 17, 2022, even if subsequently closed. Borrowers can reopen the case, file the adversary proceeding, and submit the attestation form.

Prior denials are not necessarily permanent. Courts have held that denial of a hardship discharge is generally made without prejudice. A borrower whose circumstances have changed since a prior denial may file a new adversary proceeding seeking discharge based on current conditions.

The full process for reopening a closed bankruptcy case explains how the motion works and what courts look for.

Related: Can You Get Student Loans After Bankruptcy?

Among borrowers who file adversary proceedings, roughly 39% obtained some form of discharge historically (per Iuliano’s research in the Duke Law Journal). Post-2022 data shows success rates among filers rising to approximately 87%, driven largely by the DOJ attestation process facilitating settlements on federal loans.

The filing gap. Fewer than 0.1% of student loan borrowers in bankruptcy — roughly one in a thousand — have attempted discharge through an adversary proceeding. The widespread belief that student loans “cannot” be discharged has discouraged even those who might qualify from trying.

Attorney representation matters. Success rates are significantly higher for borrowers represented by attorneys compared to those filing pro se. The adversary proceeding is a litigation process with procedural requirements, evidentiary standards, and strategic considerations favoring experienced representation. A student loan bankruptcy attorney familiar with the current landscape — including the DOJ attestation process and private loan classification framework — can evaluate whether a borrower’s circumstances support discharge.