Discharging Students Loans is Possible in a Bankruptcy for Roseville and Placer County Residents
- Daniel Rodriguez
- Nov 3, 2023
- 2 min read
Updated: Jan 30
Student loan debt has become a significant financial burden for millions of Americans, and Roseville and Placer County residents are no exception. With more than 44 million borrowers in the U.S. carrying student loan debt, averaging over $35,000 per borrower, many struggle to find relief. Fortunately, new Department of Justice (DOJ) and Department of Education (ED) guidelines aim to make it easier for bankruptcy filers to have their student loans discharged.

If you live in Placer County or Roseville, CA, and are considering bankruptcy as a solution for student loan debt, understanding this new guidance can be crucial to your financial future.
New Federal Guidance on Student Loan Bankruptcy Discharges
Under the updated DOJ and ED guidance, student loan borrowers in California who file for bankruptcy may have an easier path to loan discharge if they can demonstrate undue hardship. The guidelines also help lenders and loan servicers better understand how discharges work under bankruptcy laws in California.
If you are struggling to make student loan payments and are exploring bankruptcy in Roseville or Placer County, you may be able to have your loans discharged by proving that repayment would cause undue hardship.
How Can You Qualify for a Student Loan Discharge in Bankruptcy?
To take advantage of this new guidance, borrowers must file a separate legal action known as an adversary proceeding as part of their bankruptcy case in California. The court will then determine whether repaying your student loans imposes an undue hardship based on three key factors:
Minimal Standard of Living – If your current income and expenses do not allow you to maintain a basic standard of living while repaying student loans.
Duration of Hardship – If your financial struggles will last more than five years from the date of filing.
Good-Faith Effort – If you have made sincere attempts to repay your loans but still cannot afford them, with no realistic prospect of future repayment.
Bankruptcy courts in California, including those serving Roseville and Placer County, will evaluate your entire financial situation. This means that even if you are currently unemployed or underemployed, you may still qualify for student loan discharge if you can prove undue hardship.
What This Means for Roseville and Placer County Residents
The new DOJ and ED guidance is a positive development for student loan borrowers in Placer County and Roseville, considering bankruptcy as a path to financial recovery. However, every case is unique, and meeting the necessary legal requirements is essential to obtaining relief.
If you are struggling with overwhelming student loan debt in Roseville or Placer County, connect with one of our experienced bankruptcy attorneys. Our experienced bankruptcy attorneys can help you understand your options and take the right steps toward financial freedom. You can also call our office at (800) 920-5351.
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