Chapter 13 NonFiling Spouse Student Loan Issue
Posted: Mon Nov 20, 2017 7:31 pm
I have a confirmed Chapter 13 case where the Debtor ishusband. Wife is a non-filing spouse. Thisis a Santa Ana case with Judge Bauer.
The plan provides for a distribution to the GUCS of 8%.
Wife has a student loan on the FFELP consolidation programtaken out in 2005 (before the marriage).AES is the servicing agent for the loan currently owned by Deutsche BankELT for Suntrust.
Debtor filed a Proof of Claim for the wifes FFEPloans. No objection to the POC wasfiled.
Trustee thereafterfiled a Notice of Intent to Pay Claims in which this creditor was listed and no timely objectionswere filed. This was filed in August 2017.
Prior to the bankruptcy the loans were being paid withcommunity property earnings.
Now , in November 2017, the lender is filing for relief fromstay and for an Order stating that the stay of action against co-debtorprovided for in 11 USC 1301(a) does not apply to the student loan debt ofnon-filing spouse. In the alternativethey are asking for relief from stay (did not use local forms for RFS).
My options, under consideration, are to oppose the motion or file a new 13 casefor the wife. Open to other strategies.
Your input and opinions are appreciated. Thank you!
I have a confirmed Chapter 13 case where the Debtor is
husband. Wife is a non-filing spouse. This
is a Santa Ana case with Judge Bauer.
The plan provides for a distribution to the GUCS of 8%.
Wife has a student loan on the FFELP consolidation program
taken out in 2005 (before the marriage).
AES is the servicing agent for the loan currently owned by Deutsche Bank
ELT for Suntrust.
Debtor filed a Proof of Claim for the wifes FFEP
loans. No objection to the POC was
filed.
Trustee thereafter
filed a Notice of Intent to Pay Claims in which this creditor was listed and no timely objections
were filed. This was filed in August 2017.
Prior to the bankruptcy the loans were being paid with
community property earnings.
Now , in November 2017, the lender is filing for relief from
stay and for an Order stating that the stay of action against co-debtor
provided for in 11 USC 1301(a) does not apply to the student loan debtnon-filing spouse. In the alternative
they are asking for relief from stay (did not use local forms for RFS).
My options, under consideration, are to oppose the motion or file a new 13 case
for the wife. Open to other strategies.
Your input and opinions are appreciated. Thank you!
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