Generally, student loans are not dischargeable in a bankruptcy. However, if you can show that the student loans will impose an undue hardship on you and your family, you may be able to have them discharged. Be aware, however, that showing an undue hardship exists can be very difficult. In addition, you will need to file a separate petition for an adversarial proceeding in order to have the bankruptcy court consider whether a hardship discharge is necessary.

Most courts follow the Brunner test is determining whether an undue hardship exists. To succeed you must show three things. First, you must prove that you cannot maintain a minimal standard of living given your income and expenses if you must repay the student loans. Next you will need to show that circumstances are such that your current financial state is likely to continue into the foreseeable future. Finally, you must prove to the court that you have made a good faith effort to repay the loans up to this point. The court will consider all factors of your case including the number of children and your earning potential.

If you cannot show that your student loans constitute an undue hardship, consider filing for Chapter 13 bankruptcy. If you file for Chapter 13 bankruptcy, you may pay less per month toward your student loans than you currently do, giving you a break. However, to qualify for Chapter 13 bankruptcy you must have regular and reliable income for at least six months prior to filing for bankruptcy. Discuss your bankruptcy options with a Missouri bankruptcy attorney to determine what your options are regarding your student loans.