Student Loans Bankruptcy Florida: Can You Discharge Student Debt?

Student Loans Bankruptcy Florida cases involve unique legal standards that borrowers should understand before filing.

For years, it’s been widely believed that student loans are never dischargeable in bankruptcy. While that used to be nearly true, recent developments have shifted the legal landscape—especially for Florida residents.

Yes, it is possible to discharge student loans in bankruptcy in Florida, but the process involves a specific legal procedure and demonstrating that repaying those loans would cause what’s known as “undue hardship.” Recent guidelines from the U.S. Department of Justice (DOJ) have simplified this process, making it more accessible than ever before for individuals struggling under the weight of student loan debt.

If you’re burdened by federal student loans and considering bankruptcy, here’s what the law really says—and how you may be able to achieve the financial freedom you’ve been working toward.

Not an Automatic Discharge: What Happens When You File Bankruptcy?

When you file for bankruptcy in Florida, whether under Chapter 7 or Chapter 13, your student loan debt is not automatically erased. This is a critical point many people overlook.

Unlike credit card debt or medical bills, student loans are treated differently under federal bankruptcy laws. If you want to pursue discharge, you’ll need to go a step further.

The Adversary Proceeding: A Separate Legal Action Within Bankruptcy

To attempt to discharge your student loans, you must file a special type of lawsuit within your bankruptcy case. This is called an adversary proceeding.

In this proceeding, you ask the bankruptcy court to determine whether repaying your student loans would impose an undue hardship on you and your dependents.

This is where things have historically gotten difficult—but new DOJ guidance has provided clearer standards and more transparency.

What Is “Undue Hardship” and How Do You Prove It?

The term undue hardship doesn’t have a single fixed definition, but it typically means that:

You cannot maintain a minimal standard of living if forced to repay the loans,
Your financial situation is not likely to improve in the foreseeable future, and
You’ve made a good faith effort to repay your student debt in the past.

These three factors are often referred to collectively as the Brunner test, named after a key legal case.

Under the new DOJ guidelines, bankruptcy attorneys can use a standardized form to submit relevant financial information. This form helps the court assess whether you qualify for discharge, and it reduces the burden of complicated litigation for many debtors.

Which Loans Are Eligible for Discharge?

The new DOJ guidance applies primarily to federal student loans, particularly:

Direct Loans
Direct Consolidation Loans held by the U.S. Department of Education

Private loans, such as those issued by banks or lenders not affiliated with the Department of Education, are not covered under this federal guidance—but they can still be addressed in bankruptcy with separate legal strategies.

If you have questions about which loans are eligible, we recommend reading our detailed bankruptcy process guide or reaching out to The DeVries Law Firm for personalized guidance.

Good Faith Effort: Proving You Tried

To be considered for student loan discharge, you must show that you’ve made a good faith effort to repay your loans over time. This doesn’t mean you had to pay off a large portion—it simply means:

You attempted to stay in contact with loan servicers,
You explored or attempted repayment options, and
You did not intentionally avoid repayment.

If you’ve struggled with loan payments due to medical issues, job loss, or other financial hardship, these circumstances can work in your favor.

You Might Be Eligible for a Partial Discharge

Even if the bankruptcy court doesn’t discharge all your student loans, it may agree to partially discharge them.

This means the court recognizes that repaying the full balance would be a hardship but may still hold you responsible for a smaller portion. This can result in significant debt relief while avoiding total denial of discharge.

Learn more about what partial discharge looks like by visiting our bankruptcy myth-busting blog.

Chapter 7 vs. Chapter 13: Which Is Right for You?

If you’re considering filing bankruptcy to address student loan debt, it’s important to understand the two most common types:

Chapter 7 Bankruptcy: Often referred to as “liquidation,” this is typically faster and available to those with little or no disposable income. You may be able to discharge eligible student loans by filing an adversary proceeding after your case is filed.
Chapter 13 Bankruptcy: Also called a “wage earner’s plan,” this involves creating a repayment plan over three to five years. This can be a useful option if you want to catch up on other debts while pursuing a potential student loan discharge.

Your financial goals and obligations will determine which chapter is appropriate. Explore our detailed breakdown for more insight.

Other Student Loan Relief Options to Know

Cosigned Loans

If your student loans are cosigned, your bankruptcy filing may also impact the cosigner’s financial obligations. It’s important to fully understand these consequences before proceeding.

A bankruptcy attorney can help you assess the impact on all parties involved.

Administrative Discharge

In certain situations, such as permanent disability or school closure, federal student loans may be eligible for administrative discharge, which doesn’t require bankruptcy. These options are handled outside the court system and may provide relief without filing bankruptcy.

Student Loan Management Program (Northern District of Florida)

The Northern District of Florida Bankruptcy Court has established a Student Loan Management Program that provides additional tools for debtors seeking to manage student loan obligations within a bankruptcy plan.

While this program does not guarantee discharge, it offers structure and communication channels between borrowers and lenders during bankruptcy.

When Should You Speak with a Bankruptcy Lawyer?

While recent changes have made student loan discharge more attainable, the legal standards remain complex, and every case is different. Speaking with a bankruptcy attorney ensures you understand:

Which loans are eligible for discharge
How to prepare your adversary proceeding
Whether a Chapter 7 or 13 case is better for your situation
The documents and evidence you’ll need to present your case effectively

At The DeVries Law Firm, we help Florida residents evaluate whether bankruptcy is the right solution—and if so, how to pursue a discharge of student loan debt under the latest legal guidelines.

Your Path to Financial Freedom Starts Here

If you’re overwhelmed by student loan debt, you’re not alone—and you do have legal options.

Thanks to the updated Department of Justice guidance, more Floridians than ever before are successfully discharging student loans through bankruptcy. You deserve to understand your rights and build a strategy that protects your financial future.

📞 Call us today at +1 904 877 3161 or visit our Student Loan Bankruptcy Help page to schedule a consultation. We’ll walk you through your options step by step.

644 Cesery Blvd. Suite 250 Jacksonville, FL 32211

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