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Student Loans = Consumer Debt????
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In re Stewart, 175 F.3d 796 (10th Cir. 1999) supports the argument that
student loans are business debts to the extents of tuition and book
expenses.
Holding:
"Based on the above, we conclude a "reasonably conceivable state of facts"
exists providing a rational basis for the separate classification and
treatment of consumer and business debtors under 11 U.S.C. 707.
Specifically, we find it reasonable Congress enacted 707(b) to counter
Chapter 7 abuse by consumers who amass debt through easy credit practices,
consume the items purchased, and then seek discharge of their debt even when
able to pay. A rational relationship exists between Congress singling out
consumer debtors for dismissal for substantial abuse under 707(b) and the
government's legitimate purpose in preventing consumer abuse, reasonably
protecting creditors and empowering the courts with a mechanism to more
readily dismiss substantially abusive consumer petitions. Accordingly, we
hold 11 U.S.C. 707(b) does not violate the equal protection provisions of
the Constitution."
Hale
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David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
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David A.
Tilem
Certified Bankruptcy
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