Bankruptcy and Student Loan Litigation in California
For many California residents, student loan debt can feel overwhelming. Federal and private 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 California, helping clients navigate the complex legal landscape, negotiate with lenders, and explore debt relief options.
Can You Discharge Student Loans in Bankruptcy?
Generally, federal and private student loans are not automatically dischargeable in bankruptcy. California borrowers may still pursue relief under specific circumstances:
Proving “undue hardship”: Courts apply the Brunner Test to determine if repaying loans imposes an undue hardship.
Private loans: May be challenged in court if you can demonstrate unfair practices, misrepresentation, or other 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
The Big, Beautiful Law: Apply by June 2026
Recent federal law changes require borrowers with federal student loans to apply for Public Service Loan Forgiveness (PSLF) or an Income-Driven Repayment (IDR) plan before June 2026, or risk losing eligibility 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: Adjust monthly payments based on income and family size, with forgiveness after 20–25 years.
Because of this limited deadline, California borrowers should explore all options for permanent student loan discharge, including bankruptcy litigation, to protect their financial future.
The Brunner Test: Key to Discharging Student Loans
California courts 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 elements is necessary to achieve a discharge. Experienced bankruptcy attorneys can help gather documentation, prepare filings, and advocate effectively on your behalf.
Student Loan Litigation Options in California
Even if bankruptcy is not feasible, litigation and negotiation strategies may help:
Challenge loan validity or collection practices
Dispute improper charges, fees, or interest accruals
Negotiate settlements with federal or private lenders
Request administrative review of federal loan programs
Due to changing federal law and the approaching June 2026 PSLF and IDR deadline, acting now is critical. Bankruptcy may offer permanent relief if program eligibility is at risk.
California Bankruptcy Courts Handling Student Loan Cases
Student loan litigation and bankruptcy filings in California are handled in various federal districts. For residents in Central California:
Los Angeles Division: 255 E Temple St, Los Angeles, CA 90012
Riverside Division: 3420 Twelfth St, Riverside, CA 92501
Santa Ana Division: 411 W Fourth St, Santa Ana, CA 92701
California Bankruptcy Judges
Albert, T. (Santa Ana)
Barash, M. (San Fernando Valley, Northern)
Bason, N. (Los Angeles)
Bluebond, S. (Los Angeles)
Brand, J. (Chief Judge) (Los Angeles)
Clarkson, S. (Riverside, Santa Ana)
Clifford III, R. (Northern)
Houle, M. (Santa Ana)
Kaufman, V. (San Fernando Valley)
Klein, S. (Los Angeles)
Kwan, R. (Los Angeles)
Mund, G. (San Fernando Valley)
Reyes Bordeaux, M. (Riverside)
Russell, B. (Los Angeles)
Saltzman, D. (Los Angeles, Northern)
Smith, E. (Santa Ana)
Tighe, M. (San Fernando Valley)
Yun, S. (Riverside)
Zive, G. (Los Angeles)
Zurzolo, V. (Los Angeles)
Low-Bono Student Loan Bankruptcy Assistance in California
At Bankruptcy Near Me, we provide services for California residents, including:
Case evaluation and strategy assessment
Filing and representing Chapter 7 or Chapter 13 bankruptcy cases
Preparing undue hardship claims for student loan discharge
Negotiating settlements or repayment options with lenders
Court representation and advocacy throughout the process
Call 714‑798‑2544 or email info@bankruptcynearme.org to see if you qualify for low-bono student loan litigation or bankruptcy assistance.
Frequently Asked Questions
Q: Can I discharge federal student loans in California bankruptcy?
A: Yes! With a skilled bankruptcy attorney who is familiar with student loan discharges in bankruptcy.
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 federal/state forgiveness options.
Q: How long does a student loan bankruptcy case take?
A: Chapter 7 student loan bankruptcy can take 3–6 months, though litigation may extend the timeline depending on undue hardship claims.
Q: What happens if I miss the June 2026 federal program deadline?
A: You risk permanent loss of eligibility for PSLF or IDR forgiveness programs, making bankruptcy or litigation a critical option.
Bankruptcy Near Me — California Office
Phone: 714‑798‑2544
Email: info@bankruptcynearme.org
Protect your financial future and act before deadlines expire — let us help you navigate complex student loan issues today.
