Many people in Oregon struggle to repay their student loan debts. Unlike other types of unsecured debts, such as credit card balances or medical bills, student loans are normally not dischargeable in bankruptcy. However, student loans may be dischargeable in some cases.

In order to discharge student loans, one must be able to show that repaying the debts would cause them undue hardships. Most jurisdictions use the Brunner test to determine whether or not a student loan may be discharged. In order to prevail under this test, debtors must be able to illustrate that they have circumstances that create hardships and that the hardships are likely to last for the length of the loans’ terms. They will also have to demonstrate that they have made good-faith efforts to repay the loans.

While some judges may want to help people who are struggling under the weight of their student loans, most debtors will not be able to get their student loan debts discharged. If they have other unsecured debts that are making it difficult for them to meet their student loan obligations, however, they might be able to have those debts discharged in Chapter 7 bankruptcies so that they can free up some money.

Student loans have become a major debt problem in the U.S. They are now the second largest category of consumer debt. Debtors who believe that they might be able to meet the requirements of the Brunner test may want to talk to experienced bankruptcy lawyers about whether or not their loans might be dischargeable. An attorney may analyze the facts and circumstances of a client’s case and provide honest assessments.