Financial Relief Program
Yes, You May Be Able to Discharge Federal Student Loans in Chapter 7 Bankruptcy.
The old rules have changed. New federal guidelines mean you may not have to keep suffering under a lifetime of federal student debt. If you qualify for Chapter 7, Clean Slate BK Group may be able to help you legally eliminate your government-backed student loans alongside your credit cards and medical bills.
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Experienced in Central District of California Federal Student Loan Adversary Proceedings
Life After Federal Student Loan Debt: Carl Went from Paying $1,100/month to $0 After Discharging His Federal Student Loans
This review reflects the individual’s experience. Results may vary depending on your particular circumstances. Paid testimonial.
[VIDEO STILL: client interview at the CSBK office]
My Student Debt Relief Story
The Undue Hardship Myth is Dead.
For decades, Americans were told that student loan debt was permanent—that unless you met an impossible standard of undue hardship, you were stuck with it for life. While the law still requires borrowers to prove that repayment would impose an undue hardship, the process has changed significantly for federal debts.
The Department of Justice and Department of Education have adopted new guidance that streamlines the process specifically for federal student loans. Rather than forcing borrowers through a lengthy and unpredictable process, the government now uses a clearer, standardized set of criteria to assess your income, expenses, and asset levels. If repaying your federal student loans would prevent you from maintaining a basic standard of living, you may qualify for a full or partial discharge.
Get StartedYour Path to True Federal Student Debt Relief
The Eligibility Check
We review your current federal student loan roster alongside your income to verify if you qualify under the Chapter 7 Means Test.
The Adversary Proceeding
Our legal team files your Chapter 7 petition and initiates an Adversary Proceeding, the formal legal lawsuit required to separate and wipe out your federal student loan debt.
Total Debt Elimination
If the court enters a discharge order, your qualified federal student loans, credit card balances, and medical bills will no longer be enforceable, freeing you from any legal obligation to repay those debts.
Common Questions About Bankruptcy & Student Loans
Chapter 7 bankruptcy, often called “liquidation bankruptcy”, is a strategic tool available to individuals to eliminate (“discharge”) most of their unsecured debts. It is often referred to as a “fresh start” because it allows individuals with overwhelming debt the opportunity to begin to rebuild their financial lives.
Quick Eligibility Check
Primarily unsecured debt
Regular income (or none)
Pass the Means Test
No recent BK filing
Frequently Asked Questions
Will filing for Chapter 7 mean I lose my car or home?
Rarely. Most Chapter 7 cases are “no-asset” filings, meaning state and federal exemptions protect your personal property, vehicle, and primary home equity while wiping out your unsecured liabilities.
How long does the entire process take?
A standard Chapter 7 bankruptcy takes roughly 3 to 6 months to discharge. The federal student loan adversary proceeding runs parallel to this timeline but may take a bit longer to complete.
If I am still in school, can I discharge my federal student loans by filing Chapter 7 bankruptcy?
Filing Chapter 7 while still enrolled and attending school makes discharging federal student loans exceptionally difficult because you cannot easily prove “undue hardship.” Since you have not yet graduated, bankruptcy courts generally assume your financial struggles are temporary and that your income will improve post-graduation. Furthermore, because federal student loans are usually deferred while you are enrolled, you cannot establish the legally required track record of making a “good faith effort” to repay them. Filing now also jeopardizes your ability to secure future federal or private student loans for remaining semesters. Finally, Chapter 7 will not cover any new student debt you accumulate after your filing date, meaning it is usually strategically better to wait until after graduation.
Ready to get started?
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