Introduction — Why this matters now
If you have federal student loans and are filing bankruptcy in California, you can ask the court to discharge those loans only by bringing a separate adversary proceeding under 11 U.S.C. §523(a)(8). Since November 2022 the Department of Justice (DOJ) and Department of Education (ED) have implemented a new, borrower-facing process that uses a financial attestation and clearer standards for DOJ attorneys assessing whether to recommend discharge — a change that meaningfully affects how many federal loans are discharged in bankruptcy.
This article explains the mechanics specific to California debtors: the required adversary complaint, what documents the government and court will expect, CA (and Central District of California) service rules, relevant deadlines, the three DOJ review criteria (present inability to pay, likely persistence, and good-faith efforts), and practical timeline expectations. It also points to the forms and records you should gather before you (or your attorney) files.
Step-by-step: How to start the discharge process
- File your bankruptcy case (Chapter 7 or Chapter 13). You must have an open bankruptcy case before you initiate an adversary proceeding to determine dischargeability under §523(a)(8).
- Start an adversary proceeding. The student-loan discharge request is commenced by filing a complaint (an "adversary complaint") in your bankruptcy case; this functions like a civil lawsuit inside the bankruptcy case. See Federal Rule of Bankruptcy Procedure 7001 and the FRBP rule on dischargeability (Rule 4007).
- Complete and submit the DOJ/ED attestation when asked. Under the DOJ/ED process, debtors are given a borrower attestation form and asked to provide supporting documents (tax returns, paystubs, bank statements, servicer account history, medical records where relevant, and other proofs described below). DOJ attorneys use the attestation and supporting records to evaluate the three review criteria and to decide whether to recommend discharge (full or partial) to the court.
- Serve the complaint properly. When the Department of Education is a defendant the Central District of California (and other districts) require specific service addresses and procedures; the court may permit joint stipulations to extend discovery and scheduling deadlines to accommodate DOJ/ED review. Follow local rules and any General Orders carefully (Central District guidance lists the addresses and the General Order implementing the DOJ/ED procedure).
- Negotiate a stipulation or proceed to trial. If DOJ/ED, after reviewing the attestation and records, recommends discharge (or a partial discharge), the parties commonly file a stipulation and proposed order for the judge to sign. If DOJ/ED opposes, the matter proceeds through normal adversary procedures (motions, discovery, and trial).
What evidence to assemble now — document checklist
Begin gathering the documents the attestation and the court will expect. Prepare certified or original copies where appropriate; for quick review, assemble both digital copies (PDF) and a labeled folder with the originals or certified copies:
- Income & tax records: Federal tax returns (usually 4 years), W-2s, 1099s, most recent pay stubs, proof of unemployment benefits or other public benefits. DOJ guidance says it will use IRS/IRS-derived standards when calculating ability to pay.
- Monthly living expenses: Rent/mortgage statements, utility bills, medical bills, child-care or education expenses, and receipts for recurring essential costs.
- Bank statements: At least several months to show cash flow and savings.
- Loan history: Your federal loan account history and servicing records (downloadable from StudentAid.gov / the NSLDS data download — “Download My Aid Data”) and servicer payment history. The attestation process relies on accurate account history.
- Repayment attempts & contacts: Proof you contacted servicers or ED about repayment plans, income-driven repayment (IDR) enrollment or consolidation, and copies of IDR paperwork or bills showing attempts to repay (these support the "good faith" prong).
- Medical and disability records (if applicable): Doctor letters, SSA disability award letters, or other medical documentation to support a presumption that circumstances will persist (one of the DOJ presumptions).
- Employment & education history: Resumes, credentialing records, and proof of how a lack of degree or credential affects earning capacity (DOJ guidance identifies lack of degree as a potential presumption for future inability to pay).
Organize files and create a concise index; DOJ attorneys and the court will appreciate a clear, easy-to-follow packet. If possible, include a downloaded "My Aid Data" text file or a loan-account printout from StudentAid.gov so loan disbursements, balances, and servicer assignments are clear.
Deadlines, likely timeline, and local service rules in Los Angeles
Key timing rules and what to expect:
| Step | Typical timing / rule |
|---|---|
| File adversary complaint | File promptly after the main bankruptcy petition; FRBP 4007 generally requires complaints under §523(c) to be filed within 60 days after the first §341 meeting date unless extended by the court. Courts often allow extensions for good cause. |
| DOJ/ED attestation review | DOJ/ED aims to review the attestation early; local practice varies but expect weeks to a few months for review and for parties to negotiate a stipulation or set trial dates. The Central District has procedures (General Order 23-03) that permit formal extensions and give DOJ time to follow its guidelines. |
| Discovery & hearing | If DOJ/ED does not stipulate, the adversary proceeds like any civil case in bankruptcy court — discovery, pretrial conferences, and trial. Time to resolution varies widely (months to over a year) depending on complexity. |
| Resolution | If DOJ recommends discharge and the court signs an order, the discharge (full or partial) will be reflected in the adversary judgment and the bankruptcy docket; if not, the loan remains nondischargeable unless the court grants relief after trial. |
Central District (Los Angeles) service rules: If the Department of Education is a defendant, the Central District requires service on multiple government addresses (including the U.S. Attorney's Civil Process Clerk, the DOJ Attorney General mailbox, and the Department of Education Office of General Counsel). The court's local guidance also provides a model stipulation and an order that lets judges extend deadlines so DOJ/ED can complete their review. Follow these local rules carefully — improper service can delay your case.
Legal standards courts apply
Historically courts used the Brunner three-part test (cannot maintain minimal standard of living while repaying; circumstances likely to persist; good faith efforts), and many circuits — including courts in California — reference Brunner in undue-hardship decisions. The DOJ/ED guidance does not replace the statute or court authority; it clarifies how DOJ attorneys will evaluate cases and lists certain presumptions (e.g., disability, retirement age, protracted unemployment, lack of degree) when assessing future ability to pay. The bankruptcy judge retains final authority.
Practical tip: Filing early and submitting a complete attestation and loan-history package makes it more likely DOJ will be able to evaluate the case promptly and, if appropriate, recommend discharge or a partial discharge to the court.
Practical considerations and next steps
- Do you need an attorney? Student-loan adversary proceedings involve civil litigation rules and evidentiary standards; an experienced bankruptcy attorney can organize evidence, prepare the attestation, and handle service/discovery. Self-represented debtors can proceed pro se, but courts and DOJ will still expect complete, well-documented submissions.
- Private loans: The DOJ/ED process only covers federal loans. Private lenders do not follow the DOJ attestation process; discharging private student loans remains an adversarial litigation task against the lender and typically requires stronger proof.
- Records retention: Keep copies of everything you file and all communications with servicers; you will likely need certified or original documents in discovery and at hearing.
- Local resources: If you are in Los Angeles and need local procedure help, check the Central District of California’s student-loan-adversary guidance pages and consult the court’s local rules (General Order 23-03).
- Act quickly: While the DOJ/ED process has opened access for many borrowers, rules and administrative procedures can change. Filing sooner rather than later preserves deadlines and your option to seek discharge.
If you want, we can help you: we can (1) outline a document checklist tailored to your facts, (2) draft a sample adversary complaint checklist, or (3) point you to local self-help clinics and court filing resources in Los Angeles. For precise court forms, always use the official court and DOJ/ED downloads referenced in this article.
Selected primary sources used in this guide: DOJ/ED press release and implementation materials (DOJ press release and DOJ attestation fact sheet), FRBP Rule 4007 (deadline rules), Central District of California local guidance for student-loan adversary proceedings, and the Brunner decision describing the traditional three-part undue-hardship test.