Undue Hardship

Take the 60-second undue hardship quiz. Not all educational loans are subject to the general rule of non-dischargeability in Oregon bankruptcy court.

Do I qualify to wipe out my student loans in bankruptcy?

undue hardship

ANSWER: The good news is that all student loans can be forgiven, whether federal or private. If you haven’t already, take our 60-second undue hardship quiz.

Undue Hardship Student Loan Michael Fuller 503-201-4570

The more boxes you can honestly check, the more likely your bankruptcy judge is to forgive your student loans. Read more about the undue hardship exception. Review our FAQ about simple lifestyle changes you can make to maximize your odds of discharging your educational debt.

Undue Hardship Exception

For any chance at wiping out your student debt in bankruptcy, you must qualify for the undue hardship exception. To qualify, you must be able to honestly check the first three quiz boxes:

  • I have no money left over each month to pay my student loans
  • My money problems aren’t going to get any better in the future
  • Over the years, if I ever had extra money, I put it toward my student loans

Create a Plan of Action

Brunner undue hardship test Oregon bankruptcy courtAssuming you can check the first three boxes, look over the rest of your quiz results. The more boxes you can honestly check, the more likely the judge is to forgive your student loans. Review our FAQ to create a plan of action to improve your odds of wiping out your student debt.

Can you make changes that will allow you to check more boxes? Can you spend less money each month? Should you have retirement savings? Can you take on a second job? Have you applied for income based repayment plans? Should you buy a new car?

The longer you wait to file bankruptcy, the more likely the court is to forgive your student loans. At trial, you want to bring written proof for each quiz box you checked.

Undue Hardship Exception

Undue Hardship Student Loans Forgiveness Oregon Bankruptcy Court

QUESTION: What is the undue hardship exception?

ANSWER: Undue hardship is what you must prove in order to forgive your student loans. Undue hardship involves three things. First, you must have no money left over each month to repay your student loans. Second, your money problems must show no signs of getting better in the future. Third, if you ever had extra money, you used it to repay your student loans.

Click here to read the actual text of the law about student loan forgiveness.

Types of Student Debts that can be Discharged in Oregon Bankruptcy CourtUndue Hardship Exception and the Brunner Test

Oregon courts use the Brunner test to prove undue hardship. Click here to learn more about the Brunner test. Take the student loan quiz to see if you may qualify to wipe out your student loans in Oregon bankruptcy court.

Income Based Repayment Plans

Income Based Repayment Plans Student Loan Forgiveness Oregon Bankruptcy Court

QUESTION: Should I apply for income based repayment plans?

ANSWER: Yes, always apply every year for each loan you have. Income based repayment plans allow you to pay what you can afford on your student loans. To greatly improve your odds of wiping out your student loans in bankruptcy, you should apply for repayment plans every year. For federal loan repayment options, click here. Your private loans may not offer income based repayment options – apply anyway. And keep copies of your letters requesting income contingent repayment options.

Income Based Repayment Plans

Ask all your student loan companies about income based repayment options, even if they are not currently available to you. Click here to learn about repayment plans for federal loans.

Filing Student Loan Complaint in Oregon Bankruptcy CourtIncome and Expense Budgets

Keep all copies of the letters you send asking about repayment options. You may need to show them to the court later.

Provide your lenders copies of your most recent tax returns and your monthly budgets. View sample monthly income and expense budgets.

If your income is low, your federal loan repayment plan payments will often be zero. Private student loans often do not offer repayment plans based on income.