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Student Loan Payment on Schedule J in Ch7=20=20=20=20
Only in a consumer case where debtor is over-median-income for household size and taking into account exempt income sources.
Peter M. Lively, J.D., M.B.A.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax: (310) 391-2462
On Thursday, October 23, 2014 5:12 PM, "Shannon Doyle sdoyle@ebankruptcyassistants.com [cdcbaa]" wrote:
I was trying to assess at what point the US Trustee may object to debtor paying a student loan in chapter 7 to the detriment of other creditors. I have since learned that if it is a non-consumer case (over 50% of the debt is student loan obtained for business purpose, etc.) then the debtor can pay whatever amount to the student loan. However, if the case is a consumer case then the payment on Schedule J may be up for scrutiny by the Trustee. For example, in a consumer case if debtor is paying $800 month to the student loan, the Trustee may want the $800 to be paid among all creditors in chapter 13.
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
Sent: Thursday, October 23, 2014 2:34 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Student Loan Payment on Schedule J in Ch7
I think I understand you are trying to keep the debtor in a Chapter 7, but if the goal is to reduce the debt, even if they have to convert to Chapter 13, Do they pass the Brunner test? The standard is not poverty level but minimal standard of living so their above median income may not prevent at least a partial discharge via Adversary.
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
On Thursday, October 23, 2014 10:34 AM, "mailto:webblaw@earthlink.net%20[cdcbaa]" wrote:
I had an objection from Judge Kwan re student loans in an individual ch11 schedule J.
Best regards
Larry Webb
California Board of Legal Specialization
Certified Specialist in Bankruptcy Law
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Check out my Blog
Larry@webbklaw. com
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
F 805.987.2866
C 805.750.2150
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com]
Sent: Thursday, October 23, 2014 9:05 AM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Student Loan Payment on Schedule J in Ch7
I have never had them object to putting student loans in schedule J. It was including them in the MT that they objected to
On Wednesday, October 22, 2014, 'Gerald McNally' mailto:gm@mcesq.com [cdcbaa] wrote:
>I put student loan payments on Schedule J on the same rationale as past due taxes; if PC converts to Ch13, he still would have to make the payments. No holiday for student loans! There must have been other circumstances to rile up the UST.
>
>Gerry
>
>
>Gerald McNally
>McNally & Associates, P.C.
>517 East Wilson Ave., Ste 104
>Glendale, CA 91206
>818.507.5100
>Fax: 818.507.5001
>
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