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

Yes. You can file bankruptcy on student loans — both federal and private. The process differs from discharging credit cards or medical bills, but discharge is available under current law.

The short answer: Both federal and private student loans can be discharged in bankruptcy. Federal loans go through the DOJ attestation process. Private loans follow one of two routes depending on loan type. Neither discharge is automatic — both require a separate adversary proceeding within the bankruptcy case.

Bankruptcy can clear student loans, but neither federal nor private student loans discharge automatically when a bankruptcy case closes.

Why student loans require an extra step. Section 523(a)(8) of the Bankruptcy Code creates a presumption that student loans survive bankruptcy. Overcoming that presumption requires filing a separate lawsuit — called an adversary proceeding — within the bankruptcy case. Without it, the student loans remain intact even after the bankruptcy discharge order enters.

The presumption is rebuttable, not absolute. Section 523(a)(8) does not make student loans permanently nondischargeable. It creates a procedural hurdle. Borrowers who clear it receive a discharge that eliminates their student loan debt entirely — the same result as any other discharged debt.

Both loan types qualify. Federal student loans held by the Department of Education go through a structured evaluation process. Private student loans follow a different framework depending on how the loan is classified under the tax code. Both paths lead to full or partial discharge of the student loan balance.

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 guidance applies to Direct Loans and any FFEL Program loans or Federal Perkins Loans that are held by the Department of Education. It covers bankruptcy cases filed on or after November 17, 2022, and adversary proceedings pending as of that date. Borrowers whose cases closed after that date can still benefit by reopening the case.

The discharge path for a private student loan depends on whether the loan meets the IRS definition of a “qualified education loan” under Internal Revenue Code Section 221.

Qualified education loans — those meeting the IRS definition — are covered by Section 523(a)(8) and require the borrower to prove undue hardship through an adversary proceeding. The same general standard applies as for federal loans, though without the DOJ attestation process to streamline evaluation.

Non-qualified loans — those falling outside the IRS definition — are not protected by Section 523(a)(8). These loans are treated like general unsecured debt and discharge automatically when the bankruptcy case closes, with no adversary proceeding required. The creditor bears the burden of proving a loan qualifies for the Section 523(a)(8) exception.

The distinction between these two categories determines how a private student loan is treated in bankruptcy. The full analysis of private student loan discharge rules explains how courts make this determination.

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.

Chapter 7 provides a faster timeline. The main bankruptcy case typically concludes within four to six months. The adversary proceeding runs alongside or after the main case. No repayment plan protects the borrower during the process — collection activity stops only through the automatic stay, which lifts when the main case closes.

Chapter 13 provides a three- to five-year repayment plan. During that period, the plan — not the loan holder — determines payment amounts. No garnishment, collection calls, or tax intercepts can reach the borrower while the plan is active. The adversary proceeding can be filed at any point during the plan period. Chapter 13 also offers a co-debtor stay protecting cosigners from collection, which Chapter 7 does not provide.

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. Chapter 7 is faster and less expensive, but offers less protection during adversary proceeding litigation. Chapter 13 costs more and requires monthly plan payments for three to five years, but insulates from collection and protects cosigners. Some borrowers file Chapter 13 specifically to create a protected window for the adversary proceeding without collection pressure.

An adversary proceeding is a separate lawsuit filed within the bankruptcy case — the mechanism through which borrowers request student loan discharge. Without it, the Section 523(a)(8) presumption keeps the loans in place.

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. Congress created the Section 523(a)(8) exception to prevent student loan discharge without a court determination. The adversary proceeding gives both the borrower and the creditor an opportunity to present evidence before the court decides.

Cost considerations. Filing an adversary proceeding involves court filing fees and, in most cases, attorney fees for the litigation work. Cost varies by jurisdiction and complexity. Many adversary proceedings settle before trial, particularly federal loan cases under the DOJ attestation process.

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.

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.