Last Updated September 18, 2026
Short answer
Most student loans covered by § 523(a)(8) are not discharged simply by completing Chapter 7 or Chapter 13. Discharge generally requires a separate adversary proceeding and a court determination of undue hardship. The Department of Justice and Department of Education use a standardized process for many federal-loan discharge cases, but the bankruptcy judge makes the ultimate determination. In Chapter 13, the automatic stay generally limits ordinary collection while it remains in effect, but how student loans are paid during the case depends on the confirmed plan and applicable procedures.
Student loans are treated differently from ordinary unsecured debts such as credit cards and medical bills. Loans within § 523(a)(8) generally survive bankruptcy unless the bankruptcy court determines that repayment would impose an undue hardship. For many federal loans, current Department of Justice guidance provides a standardized process for evaluating undue-hardship cases.
Which loans § 523(a)(8) usually covers
The statute reaches educational benefit overpayments or loans made, insured, or guaranteed by a governmental unit, and qualified educational loans under the Internal Revenue Code definition. Private loans can still be excepted if they meet that definition. Parent PLUS and similar products need a loan-by-loan review. Do not assume a private “student” account is automatically dischargeable.
Undue hardship and Brunner
The most common framework is *Brunner v. New York State Higher Educ. Servs. Corp.* Alabama and Georgia sit in the Eleventh Circuit, which applies Brunner. The debtor generally must show (1) you cannot maintain a minimal standard of living if forced to repay, (2) additional circumstances show that situation is likely to persist for a significant part of the repayment period, and (3) you have made good-faith efforts to repay. The relief available in an individual adversary proceeding depends on the evidence, governing law, and the court’s determination.
The Justice Department attestation process
For many federal loans, the Department of Justice — coordinating with Education — has a standardized attestation that Department attorneys use when deciding whether to stipulate to facts and recommend discharge. The USTP student-loan guidance page hosts the current fact sheet, guidance text, and attestation form. Completing an attestation is not a filing with the court unless directed. The bankruptcy judge still makes an independent undue-hardship finding. Private lenders are not bound by that DOJ process.
Chapter 13 without a hardship discharge
A debtor can file Chapter 13 while owing student loans. The automatic stay generally limits ordinary collection while it remains in effect, but student-loan treatment during the case depends on the confirmed plan and applicable procedures. A plan may provide payments to the student-loan creditor through the trustee or, where permitted, provide for payments outside the plan. Interest may continue to accrue. Unless the debt is discharged through an undue-hardship determination or another applicable legal basis, any remaining nondischarged balance generally survives the bankruptcy.
Automatic stay
Filing generally stays ordinary collection of prepetition student-loan debt while the automatic stay remains in effect, subject to the Bankruptcy Code’s exceptions and any court orders affecting the stay. The stay does not discharge the loan.
Chapter 7
Chapter 7 may wipe out other unsecured debts while student loans remain unless undue hardship is proven. The stay can pause collection for a few months, not years. That can still help when cards and medical bills are the crisis.
Chapter 13
How student loans are paid during Chapter 13 depends on the confirmed plan and applicable procedures. The automatic stay generally limits ordinary collection while it remains in effect. Interest may continue to accrue, and any nondischarged balance generally remains after the bankruptcy case ends.
How Brock & Stout can help
We can identify the student loans involved, explain how § 523(a)(8) applies, review the current Department of Justice student-loan discharge process for qualifying federal loans, and discuss how Chapter 7 or Chapter 13 may affect the rest of your financial situation.
Frequently asked questions
Usually not, unless the court has determined undue hardship in a separate lawsuit. Remaining principal and interest typically survive.
It depends on the confirmed Chapter 13 plan and applicable procedures. The automatic stay generally limits ordinary collection while it remains in effect, but a plan may provide for student-loan payments through the trustee or, where permitted, outside the plan. Interest may continue to accrue, and a nondischarged balance generally remains after the case.
Good-faith repayment is part of the hardship test courts in Alabama and Georgia usually use. Contact with the servicer can matter. Skipping a particular income-driven plan is not, by itself, a complete bar — and it is not a complete substitute for the legal test.
Related resources
- Can Bankruptcy Eliminate Tax Debt? — Can Bankruptcy Eliminate Tax Debt?
Some older income-tax liabilities may be dischargeable when the Bankruptcy Code’s timing, return-filing, assessment, and other requirements are satisfied. Recent income taxes, many payroll and trust-fund taxes, and other priority or excepted tax debts generally require different treatment. Chapter 13 can provide a structured way to pay qualifying tax claims.
- Debts Bankruptcy May Eliminate — Debts Bankruptcy May Eliminate
Bankruptcy can discharge many qualifying unsecured debts, including many credit-card balances and medical bills. Domestic support obligations, most student loans covered by § 523(a)(8), certain taxes, and other categories are treated differently. The appropriate chapter depends on your debts, income, property, and financial goals.
- What Is a Bankruptcy Discharge? — What Is a Bankruptcy Discharge?
A discharge is a court order that stops a creditor from collecting qualifying debts from you personally. It is not a refund. It does not, by itself, clear a title or remove a mortgage or car lien. Not every debt qualifies. Timing differs in Chapter 7 and Chapter 13.
- What Is the Bankruptcy Means Test? — What Is the Bankruptcy Means Test?
The means test looks at household income to see whether a consumer Chapter 7 case looks like you can repay creditors. It starts by comparing income to Census medians for your state and household size. If you are over the median, a second form applies allowed expenses. Chapter 13 uses related forms for plan length. Median-income figures and expense standards change periodically, so the correct U.S. Trustee Program tables should be matched to the expected filing date.
Talk with a bankruptcy attorney
We can review your debts, property, and goals and explain Chapter 7 and Chapter 13 options that may be available.
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This page is general educational information about bankruptcy as of the date shown. It is not legal advice, does not create an attorney-client relationship, and does not guarantee results. Outcomes depend on individual facts and current federal and state law. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
