Can Bankruptcy Eliminate Student Loan Debt for Texans?

Can You Discharge Student Loans Through Bankruptcy in Texas?

If you’ve found yourself buried under a mountain of student debt in the Lone Star State, you’re not alone—and you’re probably wondering: Can bankruptcy eliminate student loan debt for Texans? It’s one of the most searched financial questions in Texas, and for good reason.

Here’s the short answer: It’s difficult, but not impossible.

Unlike credit card debt or medical bills, student loans are typically not automatically discharged in bankruptcy. However, Texans who meet strict legal standards may qualify for what’s called a student loan discharge through an adversary proceeding.

Let’s break down how it works, when it might be possible, and why working with a specialized law firm like Kisch Consumer Law could make all the difference.

How Does Student Loan Bankruptcy Work in Texas?

Filing for student loan bankruptcy in Texas involves more than just submitting standard bankruptcy forms. To even attempt a discharge of student loans, you’ll need to file an adversary proceeding—a lawsuit within the bankruptcy case.

Here’s a step-by-step breakdown of how this works:

1. File Chapter 7 or Chapter 13 Bankruptcy

You must first file for bankruptcy under either Chapter 7 (liquidation) or Chapter 13 (reorganization). This starts the process but doesn’t automatically affect your student loans.

2. Initiate an Adversary Proceeding

This is where things get real. You (or your attorney) must file a separate complaint asserting that repaying your student loans would cause undue hardship.

3. Prove Undue Hardship

Texas bankruptcy courts apply the Brunner test to determine whether your loans should be discharged. You must prove:

• You cannot maintain a minimal standard of living if forced to repay the loan.

• Your financial situation isn’t likely to improve.

• You’ve made a good faith effort to repay the loan.

Spoiler: It’s a high bar to clear—but not an impossible one.

What’s the Brunner Test and Why Does It Matter?

Texans trying to discharge student loans through bankruptcy will face the Brunner test, a three-part analysis that courts use to evaluate undue hardship:

1. Minimal Standard of Living: Are you unable to cover basic necessities (rent, food, healthcare) while repaying loans?

2. Durability of Hardship: Is your situation likely to continue long-term?

3. Good Faith Effort: Have you tried to make payments or negotiate with lenders?

This legal framework stems from the landmark case Brunner v. New York State Higher Education Services Corp., which established the criteria that most courts—including those in Texas—still follow today. For an in-depth legal perspective, you can refer to the Cornell Law School’s Legal Information Institute summary of the Brunner Test for authoritative context on how it’s interpreted across jurisdictions.

Pro Tip: Courts look favorably on borrowers who’ve made sincere efforts, even if small, to repay their loans before filing.

What Types of Student Loans Can Be Discharged?

Both federal and private student loans may be considered for discharge, but each has its own nuances:

Private loans used at unaccredited schools or for non-qualified education expenses may be easier to discharge.

What Are Some Common Voice Search Questions Texans Are Asking?

Let’s match real user intent. Here are some voice-optimized questions we’ve structured answers around:

“Can student loans be wiped out with bankruptcy in Texas?”

In some cases, yes—especially if you can prove undue hardship through the Brunner test.

“How do I get my student loans discharged through bankruptcy?”

You’ll need to file an adversary proceeding and go through a legal evaluation, ideally with an experienced attorney.

“Why choose Kisch Consumer Law for student loan debt help?”

Kisch Consumer Law has a proven track record of navigating complex bankruptcy laws to pursue student loan relief for Texans.

Why Choose Kisch Consumer Law?

Choosing the right legal partner can be the difference between a dismissed case and a discharged debt. Here’s why Kisch Consumer Law stands out:

• Specialized in consumer bankruptcy law with a focus on education debt

• Proven experience in adversary proceedings for student loan discharge

• Transparent, personalized consultations that focus on real solutions

• Deep knowledge of Texas bankruptcy courts and judges

Want to explore your options? Schedule a free consultation and learn more about creating a data-driven legal strategy tailored to your unique financial circumstances.

FAQs About Student Loan Bankruptcy in Texas

Q: Is student loan discharge guaranteed if I file bankruptcy?
No. You must meet strict legal standards and file an adversary proceeding to request discharge.

Q: How long does the process take?
The adversary proceeding can add several months to your bankruptcy timeline, depending on the court’s schedule.

Q: Will hiring an attorney improve my chances?
Absolutely. Bankruptcy attorneys understand the burden of proof and can help prepare compelling evidence.

Q: Can I discharge private student loans more easily?
Yes, courts have become more flexible in some private loan cases, especially those not used for direct education expenses.

Quick Tips: Want a Better Chance at Discharge?

• Keep records of your financial hardship (income, expenses, medical conditions)

• Show every effort to repay or negotiate your loan (e.g., deferments, income-driven plans)

• Consider legal counsel early in the process

• Avoid default before filing—courts may view this negatively

Let’s Get Real—Is It Worth It?

If you’re staring at a never-ending stack of student loan statements thinking “This is never going away,” you’re not being dramatic—you’re being realistic. But guess what? There’s a path forward.

Is student loan discharge in Texas easy? No.
Is it impossible? Absolutely not.

With the right guidance and a law firm like Kisch Consumer Law on your side, you can take back control of your financial future. And let’s be honest—adulting is hard enough without a five-digit student loan balance staring you down like a disappointed ex.

Final Thoughts (With a Side of Sass)

Look, we’re not saying bankruptcy is a magic wand. But if your student loans are dragging you through the financial mud like a busted lawn mower on a hot Texas afternoon, it might be time to consider your legal options.

Ready to stop Googling and start taking action?
Visit Kisch Consumer Law to find out how a personalized, data-driven strategy can help you navigate student loan debt in Texas—without breaking the bank or your spirit.

Remember, the worst question is the one you don’t ask—especially when it comes to your money.