What Is an Adversary Proceeding?
A lawsuit within your bankruptcy case alleging undue hardship under 11 U.S.C. 523(a)(8). Separate from your main petition. The lender is the defendant. Follows Federal Rules of Bankruptcy Procedure.
Filing the Complaint
Must state: you are a debtor, identify the loans, allege undue hardship, and request discharge. File with bankruptcy court clerk (~$350 fee). Serve on each lender and the Department of Education for federal loans.
The Litigation Process
Lender has 30 days to answer. Discovery follows. The DOJ may consent to discharge under 2022 guidance. If no settlement, it goes to trial. Typically 6-18 months total.
Frequently Asked Questions
Can I file without a lawyer?
Yes but strongly discouraged. Legal aid organizations help. NACBA can help find an attorney. Some take these cases on flat fee.
When should I file?
You can file at any time during bankruptcy. Many file shortly after the main petition. Some wait to build a stronger IDR record first.
What does it cost?
Filing fee ~$350. Attorney fees $2,000-$10,000+. Legal aid may handle for free. DOJ consent (under 2022 guidance) makes the process shorter and cheaper.
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