For decades, borrowers were told student loans could never be wiped out in bankruptcy. That is no longer true. A 2022 policy from the U.S. Department of Justice and Department of Education — still in effect in 2026 — created a clearer, more accessible path to discharge federal student loans in bankruptcy. Utah Bankruptcy Clinic, LC is one of the few Utah law firms actively using that process for our clients.

Key facts about student loan discharge in Utah:

• Federal student loans can be discharged in bankruptcy through a court proceeding that proves repayment would be an "undue hardship."

• Utah Bankruptcy Clinic is one of the few Utah firms that regularly handles these cases.

• We have discharged hundreds of thousands of dollars in student loan debt since we began offering this service in the summer of 2025.

• You pay no attorney fees for your discharge case unless we succeed in obtaining a discharge.

• We serve clients throughout the District of Utah, including the Salt Lake City and Ogden areas.

Student loans are dischargeable — most people just don't know it

Student loans get special treatment under the Bankruptcy Code. Unlike credit cards or medical bills, they are not automatically erased when you file. Instead, discharging them requires a separate step: an adversary proceeding, a focused lawsuit within your bankruptcy case, in which you show that continuing to repay the loans would cause undue hardship for you and your family.

Since the government issued its updated guidance in November 2022, that showing has become far more attainable. Borrowers complete a standardized attestation form covering their income, expenses, health, and repayment history. When the facts support relief, government attorneys are now directed to agree to a discharge rather than fight it — a dramatic shift from how these cases were handled for years. National success rates under this process have been high, and the door is now open to many borrowers who were told for years that nothing could be done.

Why work with Utah Bankruptcy Clinic

Most bankruptcy attorneys still don't pursue student loan discharges — often because the old law made them seem hopeless. We built our practice around the new process. Since the summer of 2025, we have helped clients eliminate hundreds of thousands of dollars in student loan debt, and we handle these matters throughout the District of Utah.

You pay nothing unless we win

We believe borrowers shouldn't have to gamble on relief they can't afford. That's why you pay no attorney fees for your student loan discharge case unless we are successful in obtaining a discharge for you. If we don't get you relief, you don't pay us for that work.

Wondering if your student loans qualify?

Schedule a free, confidential consultation. Call (801) 388-0007 or contact us online.

Frequently asked questions

Can student loans really be discharged in bankruptcy?
Yes. Federal student loans can be discharged in bankruptcy if you file an adversary proceeding and show that repaying them would impose an undue hardship. Since the Department of Justice's 2022 guidance, this has become a realistic option for many borrowers.

Do I qualify for a student loan discharge?
Eligibility depends on your income, expenses, health, job prospects, loan type, and repayment history. Federal Direct Loans held by the Department of Education are the clearest candidates. The best way to know is a consultation, where we review your specific situation.

How much does it cost to hire Utah Bankruptcy Clinic for this?
You pay no attorney fees for your student loan discharge case unless we succeed in obtaining a discharge for you.

How many student loan discharges has your firm obtained?
We began offering this service in the summer of 2025 and have already discharged hundreds of thousands of dollars in student loan debt for our clients.

Where does Utah Bankruptcy Clinic practice?
We represent consumer bankruptcy clients throughout the U.S. Bankruptcy Court for the District of Utah, including the Salt Lake City and Ogden areas. Our office is located at 221 25th Street, Ogden, Utah 84401.

This article is attorney advertising and is provided for general information only. It is not legal advice and does not create an attorney-client relationship. Every case is different; prior results do not guarantee a similar outcome, and discharge of student loan debt is never guaranteed. Whether student loans can be discharged depends on the facts of your case and applicable law. Please consult a qualified attorney about your specific situation. Utah Bankruptcy Clinic, LC is a debt relief agency; we help people file for bankruptcy relief under the Bankruptcy Code.