Student Loan Bankruptcy Relief Gains Traction in Few Courts

Since the government rolled out a standardized process for discharging student loan debt in bankruptcy, a small group of law firms is driving much of the increase in filings—but in many states, far fewer attorneys are giving it a try.

The 2022 Education and Justice departments’ initiative has helped some struggling borrowers. But the attestation program has failed to overcome skepticism and meaningfully address the nation’s $1.6 trillion federal student loan debt pile.

Student loan discharge petitions have since clustered unevenly across courts. The US Bankruptcy Court for the Middle District of Florida has seen the largest influx, driven largely by two firms—the Independence Law Firm and BransonLaw PLLC—which together accounted for about 13% of about 1,000 nationwide filings last year compiled by Bloomberg Law.

In other bankruptcy courts, proceedings are rare. Texas’ four bankruptcy courts combined had fewer cases than the District of Minnesota, according to the data. In Texas, many borrowers represent themselves.

“You may think of this as the same across the country, but that’s not true,” said Brian Miller, founding partner of the Independence Law Firm, which brought the vast majority of the Florida cases.

Easing the Standard

With around 42.5 million student loan borrowers carrying federal debt, using bankruptcy to address the debt of approximately 1,000 people annually is insufficient to the scale of need, said Matthew Bruckner, a Howard University School of Law professor who researches bankruptcy and student loans.

“Very few people who would benefit from addressing their student loans vis-à-vis the new procedures are taking advantage of that opportunity,” Bruckner said.

The Trump administration temporarily delayed collections and wage and tax garnishment efforts announced last year to “implement major student loan repayment reforms.”

For willing attorneys, the approach is pragmatic: check boxes—at least a decade in repayment, 65 years or older, a disability limiting future income, or proof that repayment isn’t feasible after basic monthly expenses.

“You could have a bad story and unfortunate events,” Miller said. “But if your income is too high, we’re not going to get anywhere.”

While the attestation tool was meant to ease the strict standard established under Brunner v. New York State Higher Education Services Corp., some judges still apply it. The test examines income and expenses, future financial prospects, and good-faith efforts to repay.

In North Carolina, for instance, a judge determined that a 76-year-old debtor caring for her ailing husband couldn’t realistically maintain a minimal standard of living while paying the loans and was unlikely to see her finances improve, but denied a lender-approved discharge because she failed to show good faith repayment efforts.

Florida Tops

In Florida, BransonLaw and Independence saw an opportunity to file as many cases as possible.

“If you don’t take your shot, you won’t get anywhere,” BransonLaw founder Robert Branson said. “My theory is we should try them all and see what happens.”

Orlando attorney Alec Solomita said he only has a handful of cases because, as a solo practitioner, he can’t afford to devote the time to litigation. He assesses potential clients on whether they have factors such as age or health issues that increase their likelihood of discharge, or redirects them to another firm.

“You actually have to sue the Department of Education, which is kind of a big deal, but some people take me up on it,” he said. “If I see a client with a lot of debt, I’ll do it.”

Ethical Question

Some borrowers couldn’t find a lawyer willing to represent them.

“I asked, ‘Is this something we can do?’ The lawyer said no,” said Meredith, who asked that her last name be withheld because of her case status.

She filed her request in Texas on her own last fall. She has three children and said her seasonal income makes it difficult to cover basic household expenses while keeping up with loan payments.

Meredith doesn’t know how her case will turn out, but the chance to shed nearly $66,000 in student loans, she said, “is absolutely worth it.”

Attorneys may not pursue student loan discharge because it requires litigation, they believe the debt isn’t dischargeable, or they can’t guarantee an outcome.

There’s limited awareness among attorneys of the potential to discharge student loans, said Joshua Cohen, a practitioner known as “The Student Loan Lawyer.”

“Most bankruptcy attorneys don’t believe it or don’t know how to sell it,” Cohen said.

But over time, not discussing the option with debtors “will become an ethical question,” said Igor Roitburg, senior managing director at legal service firm Stretto. “You can’t have a debt that’s that big and that relevant to the debtor, and not at least have a conversation.”

Discharge Requests

Although muted in its uptake nationwide, the process has made some into true believers.

“Once you do a few, you realize it’s a great service,” said Minneapolis bankruptcy attorney Andrew C. Walker of Walker & Walker Law Offices PLLC.

Walker, who filed dozens of cases last year for clients in Minnesota, has expanded his practice into Ohio.

“I love this program and its results,” said restructuring attorney Heather Marx of Cozen O’Connor, who last year assisted law school students discharge about $750,000 for borrowers pro bono.

Attorneys say 2026 could be busy if the Trump administration moves forward with tougher collection efforts. The temporary wage garnishment pause may slow the program’s use after a rush of borrowers sought help when collections were expected to resume.

More people submitted discharge inquiries after the 2025 garnishing announcement, Cohen said.

“All of a sudden, people realized, ‘Oh, crap, I’m gonna lose my money,’” he said. “That’s what drives bankruptcy.”

Roitburg said the level of interest in bankruptcy options for student loans “skyrocketed” in the last month and is likely to continue as a “historically high number of borrowers” are squeezed.

Wage garnishments, he said, will add to the pressure.

“That’s going to trigger a lot of people to seek help,” Roitburg said.