The Brunner test is a legal criterion applied by courts during bankruptcy cases to assess whether student loan debt can be eliminated based on undue hardship. Essentially, the Brunner test serves as a barrier, allowing student loan debt to be discharged in bankruptcy only if the debtor can show they are facing severe financial hardship with little or no chance of recovery. The test requires the debtor to prove three things.
- Minimal Standard of Living: The debtor must show that repaying the student loans would prevent them from covering essential living expenses, such as food and housing.
- Persistence of Hardship: The debtor must demonstrate that their financial hardship is not temporary and will likely to last for a substantial part of the loan repayment period.
- Good Faith Effort: The debtor must demonstrate that they have made a sincere effort to repay their student loans prior to requesting a discharge through bankruptcy.
A Bankruptcy Lawyer Can Help With the Brunner Test
The Brunner test can be complex and involve many legal standards that can be difficult to interpret without legal training. Thus, it’s important to consult with a bankruptcy attorney to help you understand how the three key components apply to your specific financial situation and to guide you through the process of filing for bankruptcy and potentially discharging your student loans.
