The Brunner test is a way to determine if certain types of debt can be discharged based on hardship. Bankruptcy does not eliminate all types of debt such as student loans, so tests like these may be used to determine if the debt can be discharged.
A Look at the Brunner Test
To determine if you have a hardship that prevents repayment of a debt, three factors are generally considered when using this test. The first is your standard of living if you are forced to continue payments. This doesn’t mean that you qualify if you wouldn’t be able to afford cable. It typically has to affect basic necessities like food and housing.
The second factor is if your hardship is expected to be short-term or long-term. If there is a reasonable expectation that your financial situation will improve, you likely wouldn’t qualify.
The third factor is if you have attempted to pay the debt back. While some might think that making no payments would look better, it may be more favorable if you can show an effort has been made.
Consult an Attorney in Plano
This test may be used when attempting to discharge student loans in Chapter 7 bankruptcy. Contact an attorney at Warren & Migliaccio at 888-584-9614. We can review the details of your financial circumstances to determine if you may meet the requirements of the Brunner test.