Archive for the 'are title loans bad' Category

All About Steering Clear Of The Means Test: Education Loan Debt

All About Steering Clear Of The Means Test: Education Loan Debt

In cases where a debtor’s liabilities are predominantly (i.e., a lot more than 50%) non-consumer financial obligation, they’re not susceptible to the means make sure the U.S. Trustee’s Office cannot object to release under Section 707(b). Which means that greater earnings earners with disposable earnings can apply for Chapter 7 without having the constraints associated with means ensure that you can avoid a Chapter 13 payment plan. It’s not unusual for debtors to possess student that is significant debts. Category among these education loan debts as non-consumer financial obligation helps a debtor be eligible for Chapter 7 bankruptcy. But courts have actually struggled with whether figuratively speaking should be thought about customer or debts that are non-consumer.

A bankruptcy court in Texas found that student loan proceeds used for direct educational expenses for dental school with the intent that the education received would enhance the borrower’s ability to earn a future living are not consumer debts to outline the inconsistent results in determining whether student loans are consumer debts for purposes of the means test. The debtor testified that he went along to dental college with the intent to become a company owner plus in hopes of creating a high income to aid their family members and downplayed the private improvements linked to the status associated with the level. Continue reading ‚All About Steering Clear Of The Means Test: Education Loan Debt‘

Kategorien