Can You Reopen Bankruptcy for Student Loans? | Florida Attorney EXPLAINS

Yes. In certain circumstances, you may be able to reopen a previously closed Chapter 7 or Chapter 13 bankruptcy case to pursue the discharge of student loans... even if you filed years ago or used another bankruptcy attorney!

This surprises a lot of people, including bankruptcy attorneys.

Maybe you filed bankruptcy three years ago. Your credit cards were discharged, your medical bills were wiped out, and you finally got the financial fresh start you needed. But your student loans? Those were still there, and you've been struggling with them ever since, like a weight you can never put down....

For years, people have been told that student loans simply cannot be discharged in bankruptcy. But that isn't entirely true, and it's a misconception we want to help change.  We have been putting in the work and attending conferences, seminars, and trainings on the new guidelines to offer this to our clients.

At Lynn Law Group, our Fort Myers and Cape Coral bankruptcy attorneys help Florida clients explore whether they may qualify to reopen a previously closed bankruptcy case and pursue student loan discharge through a separate legal proceeding, called an adversary proceeding.

What Changed With Student Loan Discharge in Bankruptcy?

In November 2022, the U.S. Department of Justice and Department of Education introduced a new, more standardized process to help qualifying borrowers pursue the discharge of federal student loans in bankruptcy.

While the legal requirement and standard of proving undue hardship remains, the new process was designed to make it more straightforward for eligible borrowers to present their financial circumstances and seek relief.

And here's what we think is especially important: You don't necessarily have to file an entirely new bankruptcy case to explore your student loan discharge options.

Depending on your circumstances, your original bankruptcy case may be reopened so that you can pursue a separate lawsuit, called an adversary proceeding, asking the bankruptcy court to determine whether your student loans are dischargeable.

The November 2022 guidance did not create the right to reopen a bankruptcy case, and its procedures do not necessarily apply to every older case. But it has created an important reason for qualifying borrowers to revisit their options.

Can I Reopen a Bankruptcy That Was Filed Years Ago?

Potentially, yes.

Especially if your bankruptcy was filed after the new DOJ guidelines came into effect, you should definitely look  into having an experienced bankruptcy attorney review your case.

We look at several factors, including your original bankruptcy filing, whether you received a discharge, the type of student loans you have, your current financial situation, and whether you may qualify for relief under the applicable law.

And if you filed bankruptcy with another law firm, that's okay, too. You are not automatically required to return to your original bankruptcy attorney to explore student loan discharge.

How Do You Reopen a Bankruptcy Case for Student Loan Discharge?

The first step is determining whether your student loans and financial circumstances may support an undue-hardship claim.

If they do, we review the original bankruptcy case and determine whether a motion to reopen is appropriate under the procedures of the bankruptcy court where your case was filed.

From there, a separate adversary proceeding may be filed to request a determination that your student loans are dischargeable.

For qualifying federal student loans, the Department of Justice's standardized attestation process may provide a more structured way to present your income, expenses, and financial hardship.

Reopening a bankruptcy does not automatically eliminate student loans, and the court ultimately determines whether the legal requirements for discharge have been satisfied.

Do I Need to File Bankruptcy Again to Get Rid of My Student Loans?

Not necessarily!

In some cases, a borrower who already received a bankruptcy discharge may be able to pursue student loan relief through the original bankruptcy case, without filing another Chapter 7 or Chapter 13.

This is one of the reasons we encourage people who have already completed bankruptcy to explore their options before assuming that their student loan debt is something they'll simply have to live with forever.

Florida Student Loan Bankruptcy Attorneys at Lynn Law Group

At Lynn Law Group, attorneys Veronica Batt and Adrian Lynn help individuals and families throughout Fort Myers, Cape Coral, Naples, Estero, Bonita Springs, and across Florida understand their bankruptcy and student loan discharge options.

Whether you filed bankruptcy recently or years ago, and whether you worked with our firm or another attorney, we're happy to evaluate whether pursuing student loan discharge may be an option for you.

You may have already received your bankruptcy discharge. But that doesn't necessarily mean you've exhausted every opportunity for financial relief.

Contact Lynn Law Group today to request a student loan discharge evaluation.