Why Bankruptcy Can’t Remove Student LoansYou’ve heard it all before. If you just file for bankruptcy in Las Vegas, you can remove all types of debts. If you’ve followed our past articles, however, you realize bankruptcy law is not this simple. Bankruptcy law has sections where only through certain circumstances can particular debts be discharged. One of these debts are students loans.

Why Student Loans Can’t Be Discharged

Student Loans are classified as unsecured debts, which means they are not attached to a piece of collateral. If you default on your student loan, the lender cannot take your property right away. Instead, they can take other actions, such as making sure you can’t get more financial aid or making it difficult to get other loans.

Before 1976, students loans were once allowed to be removed through bankruptcy. After this year, the government passed laws to protect themselves from a rising number of defaults and their investments.

It was just recently, in 2005, that the Bankruptcy Abuse Prevention and Consumer Protection Act made it so that no student loan can be discharged unless the borrower proves “undue hardship.”  The only way to discharge a student loan in a bankruptcy case is by proving to the court you’re experiencing “undue hardship.” This is currently the only way to get out of student debt, next to death.

What is Undue Hardship?

Currently, there is not a legal definition of undue hardship. Therefore, what constitutes as undue hardship is considered on a case-by-case basis. In bankruptcy court, proving this can be exceedingly difficult. Because of this, it’s practically necessary to have a bankruptcy lawyer to help you.


Most often, bankruptcy courts will use what is called a Brunner Test to see if you can discharge your student loan. The Brunner test involves three factors:

  • Poverty
  • Good Faith
  • Persistence

If your situation meets the criteria, you’re one of the few people who can discharge student loans.

Need a Bankruptcy Attorney in Las Vegas?

If you need to declare bankruptcy in Las Vegas, look no further than the law offices of Luh and Associates. Our experienced bankruptcy attorneys can give you a free consultation and get you out of debt.

Contact Luh and Associates and live a debt free life.