Discharging Student Loans in South Carolina: Brunner Test & Exhaustion of Remedies
Student loans are generally not dischargeable in bankruptcy unless repaying them would impose an undue hardship, as outlined in 11 U.S.C. § 523(a)(8). South Carolina bankruptcy courts apply the Brunner test to determine undue hardship, which requires the debtor to prove: (1) they cannot maintain a minimal standard of living while repaying the loans, (2) their financial situation is unlikely to improve, and (3) they have made a good faith effort to repay.
Courts also consider whether the debtor has exhausted all reasonable repayment options, such as applying for income-based repayment plans or negotiating loan modifications. Failure to explore these options may show a lack of good faith.
In cases like Ammirati, McCormack, and Marcotte, South Carolina courts granted full or partial discharges only after careful review of persistent financial hardship, health issues, and sincere efforts to repay. These rulings emphasize that discharge is possible—but only in exceptional cases where the debtor has demonstrated both enduring hardship and “responsible” conduct over time.
Read South Carolina Student Loan Cases: