You did everything right. You went to school, took out loans to pay for it, and expected your degree to open doors. Now you are staring at a balance that feels like a second mortgage, and someone has probably already told you, “Sorry, you can’t get rid of student loans in bankruptcy.” That is one of the most repeated half-truths in personal finance, and it costs Florida borrowers real money every year. The full truth is more complicated and, for many people, a lot more hopeful.
Discharging student loans in Florida bankruptcy is genuinely possible. It is not automatic, it is not easy, and it is not the right move for everyone. But with the right facts and the right legal approach, some borrowers do walk away from their student debt for good. This post breaks down exactly how that works, what the law requires, and what you should be thinking about right now if you live in Central Florida and your loans feel unmanageable.
Why Student Loans Are Treated Differently Than Other Debts
When you file for bankruptcy, most unsecured debts — credit cards, medical bills, personal loans — get wiped out relatively straightforwardly under a Chapter 7 filing. Student loans do not work that way. Under 11 U.S.C. § 523(a)(8) of the U.S. Bankruptcy Code, both federal and private student loans are specifically carved out from the general discharge rules. Congress first added this exception in 1976 and has tightened it repeatedly since then.
That carve-out does not make student loans impossible to discharge. What it does is require borrowers to clear an additional legal hurdle: proving that repayment would cause an “undue hardship.” The Bankruptcy Code itself does not define what undue hardship means, which is where the courts step in. Florida borrowers fall under the Eleventh Circuit Court of Appeals, and courts in that circuit apply what is called the Brunner test to decide whether the undue hardship standard has been met.
What Is the Brunner Test and How Does It Apply in Florida?
The Brunner test comes from a 1987 Second Circuit case, Brunner v. New York State Higher Education Services Corp., 831 F.2d 395. Courts in Florida — whether you are filing in the Middle District of Florida in Orlando, the Southern District in Miami, or the Northern District in Tallahassee — all follow this framework when a debtor asks to discharge student loans in Florida bankruptcy proceedings.
To succeed under the Brunner test, you must prove all three of the following by a preponderance of the evidence:
- Minimal standard of living. Based on your current income and reasonable monthly expenses, you cannot maintain a minimal standard of living for yourself and your dependents while making your student loan payments.
- Persistence of hardship. Additional circumstances exist showing that your financial situation is likely to continue for a significant portion of the loan repayment period. This is not about a temporary rough patch; courts look for something more permanent or long-lasting, such as a disability, a chronic medical condition, or a severely limited ability to earn.
- Good faith effort to repay. You have made a genuine effort to repay your loans before seeking discharge. Courts look at whether you explored income-driven repayment plans, deferment, forbearance, and other options before turning to the bankruptcy court.
All three prongs must be satisfied. Falling short on even one means the court will not discharge your student loans, no matter how sympathetic the rest of your situation looks.
Can You Eliminate Student Loans in Chapter 7?
Yes — but only if you file an adversary proceeding alongside your Chapter 7 case. This is a separate mini-lawsuit initiated under Federal Rule of Bankruptcy Procedure 7001(6), asking the court to rule that your loans meet the undue hardship standard. Filing this proceeding costs additional money and takes time on top of your regular bankruptcy case.
You will need to present evidence such as pay stubs, tax returns, bank statements, and medical records if a health condition affects your ability to work. The loan servicer or Department of Education has the right to contest your claims. Chapter 13 is another option, allowing a repayment plan of three to five years, though any remaining balance after the plan ends is generally not discharged unless you separately win an adversary proceeding.
What Does “Good Faith” Actually Mean in a Florida Bankruptcy Court?
The “good faith” prong of the Brunner test requires showing you made a reasonable and honest effort before seeking a discharge. Florida bankruptcy judges look at whether you made any payments, applied for income-driven repayment, or requested deferment or forbearance when struggling. Skipping those options entirely and going straight to bankruptcy discharge makes it harder to satisfy this requirement.
Good faith does not mean exhausting every option until you are completely destitute. If income-driven repayment was available but still unmanageable, or if your financial situation continued to worsen despite enrollment, those efforts still count. Documenting all attempts to repay or manage your loans is important for your case.
Private Student Loans vs. Federal Student Loans — Is There a Difference?
Yes, and it is worth paying close attention to this distinction. Federal student loans issued or guaranteed under programs covered by 20 U.S.C. § 1087 and related statutes are protected from discharge under § 523(a)(8). Private student loans that qualify as “qualified education loans” under the Internal Revenue Code are also protected. However, not every private loan is automatically shielded.
If you took out a private loan that was not used to attend a Title IV-eligible school, was not used for qualified education expenses, or exceeded your cost of attendance, there is a genuine argument that it falls outside the protection of § 523(a)(8) entirely. That means it could be dischargeable as an ordinary unsecured debt without the need to prove undue hardship at all. This analysis is very fact-specific, and it is exactly the kind of thing a Florida bankruptcy attorney should look at closely before you assume every loan on your statement is non-dischargeable.
Student Loan Bankruptcy Discharge in Florida 2025 — Has Anything Changed?
If you are researching student loan bankruptcy discharge Florida 2025, the approach has shifted in recent years. The Department of Justice and the Department of Education released joint guidance directing government attorneys to take a more borrower-friendly approach when evaluating undue hardship claims. This does not change the law itself, but has made federal loan discharge attempts more realistic for qualifying borrowers.
Federal legislation has also been proposed that would replace the Brunner test with a simpler hardship standard. As of this writing, that bill has not become law, and Florida borrowers must still satisfy the Brunner test. The momentum behind these reforms signals that Congress is aware of how difficult the current standard has been in practice.
Who Is a Strong Candidate for Student Loan Discharge in Florida?
There is no guarantee for any individual case, but certain profiles tend to do better in front of Florida bankruptcy judges than others. Borrowers who have a permanent or long-term disability that limits their earning capacity are among the strongest candidates, particularly when that disability has been documented medically. Older borrowers who have very limited remaining earning years and a history of good-faith repayment efforts may also present compelling cases.
People who have large loan balances from programs that did not lead to meaningful employment, or whose income has been persistently low despite genuine effort to find work, may also have arguments worth making. Conversely, if you have a professional degree, a stable income, and your hardship is primarily about choices rather than circumstances, a Florida court is unlikely to find that the Brunner standard has been met.
Key Takeaways
- Student loans are not automatically discharged in bankruptcy. Federal law under 11 U.S.C. § 523(a)(8) treats them differently from most other unsecured debt.
- Florida bankruptcy courts use the three-part Brunner test to decide whether repayment would cause an undue hardship. You must satisfy all three prongs.
- To pursue a discharge, you must file a separate adversary proceeding within your Chapter 7 or Chapter 13 case under Federal Rule of Bankruptcy Procedure 7001(6).
- Good faith effort to repay — including trying income-driven repayment options — is required before a Florida court will consider discharging your loans.
- Some private student loans may not be protected by § 523(a)(8) at all, depending on how and where the money was used. This is worth a careful legal review.
- Federal DOJ guidance issued in November 2022 has made it somewhat more realistic to pursue federal loan discharge in appropriate cases.
- The law may be changing — proposed federal legislation could simplify the discharge standard — but the Brunner test still applies today in Florida.
Frequently Asked Questions
If I file Chapter 7 in Orlando, will my student loans automatically go away?
No. A standard Chapter 7 discharge does not touch student loans. You would need to file a separate adversary proceeding and prove undue hardship under the Brunner test before any of your student loan debt can be wiped out.
Does it matter whether my loans are federal or private?
It can matter a great deal. Most federal and private loans are protected under 11 U.S.C. § 523(a)(8), but certain private loans that do not meet the definition of “qualified education loans” may be dischargeable without needing to prove undue hardship. A careful review of your loan documents is a smart first step.
What if I tried income-driven repayment but still could not afford my loans — does that help my case?
Yes, that kind of documented effort is exactly what courts want to see when evaluating the good-faith prong of the Brunner test. Showing that you pursued available options but still could not maintain a minimal standard of living strengthens your adversary proceeding considerably.
Can I get a partial discharge of my student loans in Florida?
Yes, in some cases. A Florida bankruptcy court can discharge a portion of your student loan debt while leaving the rest intact, particularly when the court finds that some of your loans meet the undue hardship standard and others do not, or when full repayment of only part of the total balance would still cause hardship.
How long does an adversary proceeding take in the Middle District of Florida?
Timelines vary depending on the court’s docket, whether the other side contests the proceeding, and how complex your financial picture is. Adversary proceedings can take anywhere from several months to over a year. Having well-organized documentation from the start of the process helps keep things moving.
Will filing bankruptcy hurt my credit worse than not filing?
A bankruptcy filing does affect your credit, but if you are already dealing with delinquencies, collections, and wage garnishments, the practical damage to your credit may already be significant. Many people find that the financial fresh start bankruptcy provides is worth more, in real terms, than protecting a credit score that has already suffered.
Ready to See If You Qualify?
If student loan debt is making it impossible for you to get ahead, you deserve a real answer — not a guess. At Tejes Law, PLLC, our Florida bankruptcy attorneys take the time to look at your specific loan types, your financial situation, and your options under Florida and federal bankruptcy law before recommending any course of action.
We can also help you determine whether you may meet the undue hardship standard, gather the right documents, and guide you through each step of the process. You don’t have to figure this out alone—clear answers and practical next steps can make a real difference. Contact us now for a free consultation.