Student Loan Bankruptcy Discharge in Maryland
For many Maryland residents, student loan debt can feel overwhelming. Unlike other debts, student loans are notoriously difficult to discharge in bankruptcy, but with experienced legal guidance, relief may still be possible.
At Bankruptcy Near Me, we specialize in student loan litigation and bankruptcy in Maryland, helping clients explore options for debt relief, negotiating with lenders, and navigating complex legal processes.
Can You Discharge Student Loans in Bankruptcy?
Generally, federal and private student loans are not automatically dischargeable in bankruptcy. Maryland residents may still pursue relief under specific circumstances:
Proving “undue hardship”: Courts apply the Brunner Test to determine if repaying the loans imposes an undue hardship.
Private loans: May be challenged in court if you can demonstrate unfair practices or defenses.
Loan forgiveness programs: Filing for bankruptcy does not prevent you from pursuing federal or state student loan forgiveness programs.
Having a skilled bankruptcy attorney file an adversary complaint to get your student loans discharged
A skilled attorney can help evaluate your situation and determine whether bankruptcy, litigation, or a combination of strategies can help.
The Brunner Test: Key to Discharging Student Loans
Maryland courts typically follow the Brunner Test, requiring proof of three elements:
Poverty: You cannot maintain a minimal standard of living if forced to repay your loans.
Persistence: Your financial situation is unlikely to improve significantly in the foreseeable future.
Good Faith: You have made a genuine effort to repay the loans before seeking bankruptcy relief.
Passing all three prongs is necessary to achieve a discharge. An experienced bankruptcy attorney can help document evidence, prepare filings, and advocate on your behalf.
Student Loan Litigation Options in Maryland
If bankruptcy is not feasible, other litigation strategies may help:
Challenging loan validity or collection practices
Disputing improper charges, fees, or interest accruals
Negotiating settlements with federal or private lenders
Requesting administrative review of federal loan programs
Each case is unique, and legal strategy should be tailored to your loan type, repayment history, and financial circumstances.
The Big, Beautiful Law: Apply by June 2026
A new federal law requires borrowers with federal student loans to apply for Public Service Loan Forgiveness (PSLF) or an Income-Driven Repayment (IDR) plan before June 2026, or they risk losing eligibility for these programs permanently.
Public Service Loan Forgiveness (PSLF): Forgives remaining federal student loan balances after 10 years of qualifying payments for those in public service jobs.
Income-Driven Repayment (IDR) Plans: Adjusts monthly payments based on income and family size, with forgiveness after 20–25 years.
Because of this limited deadline, it is strongly recommended that borrowers explore all available avenues for permanent student loan discharge, including bankruptcy litigation, to protect their financial future.
Maryland Bankruptcy Courts Handling Student Loan Cases
Student loan litigation and bankruptcy filings are handled in the District of Maryland:
Baltimore Division: Garmatz Federal Courthouse — 101 W. Lombard Street, Suite 8530, Baltimore, MD 21201
Greenbelt Division: U.S. Courthouse — 6500 Cherrywood Lane, Suite 300, Greenbelt, MD 20770
Maryland Bankruptcy Judges
Judges who oversee student loan bankruptcy cases include:
Hon. Nancy V. Alquist
Hon. Thomas J. Catliota
Hon. Maria Ellena Chavez-Ruark
Hon. Michelle M. Harner
Hon. David E. Rice (Chief Judge)
Hon. Lori S. Simpson
Frequently Asked Questions
Q: Can I discharge federal student loans in Maryland bankruptcy?
A: Only if you can prove undue hardship under the Brunner Test.
Q: Are private student loans easier to discharge?
A: Sometimes. Private lenders may be challenged for improper collection practices, misrepresentation, or contractual defenses.
Q: Can I negotiate student loans outside bankruptcy?
A: Yes. You may qualify for income-driven repayment, settlement programs, or state/federal forgiveness options.
Q: How long does a student loan bankruptcy case take?
A: Chapter 7 student loan bankruptcy can take an additional 3–6 months for processing, but litigation may extend the timeline depending on undue hardship claims.
Bankruptcy Near Me — Maryland Office
Phone: 301‑550‑5408
Email: info@bankruptcynearme.org
We provide professional, low-bono student loan litigation and bankruptcy representation across Maryland. Let us help you navigate complex student loan issues and regain financial stability today.