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adding student loan payments to expenses

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kopes

Member
What is the name of your state?What is the name of your state? MN

I am filing for BK. I have student loans, which are not dischargeable, so I will need to keep making those payments. I have to put the loans in my list of unsecured debts though. When putting down my expenses, do I add the $250 a month I have to pay on the student loans, since I don't put down any of the other unsecured debt?
 


whoisonfirst

Junior Member
not sure - many have received different answers

kopes said:
What is the name of your state?What is the name of your state? MN

I am filing for BK. I have student loans, which are not dischargeable, so I will need to keep making those payments. I have to put the loans in my list of unsecured debts though. When putting down my expenses, do I add the $250 a month I have to pay on the student loans, since I don't put down any of the other unsecured debt?
Some people (on this and other message boards) were advised to include student loan payments on their expense schedules. Others were advised not to do so. There have been recent court decisions that suggest student loans should not be given any special treatment, despite the fact that they are not discharged in bankruptcy. In other words, payments for these loans should not be allowed to reduce disposable income when considering for substantial abuse. I think it depends on a variety of factors, though, including your district, trustee, disposable income, etc.

Sorry I can't help more. I am concerned about this issue as well. If anyone knows for sure, I would love to hear more.
 
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Ladynred

Senior Member
Student loans are a priority unsecured debt. The payments are most definitely an expense that you should list. To say that repayment of a student loan is not an allowed expense would be ridiculous - they're almost treated like a secured debt because you can't ever get away from them, you HAVE to pay them.
 

smorr

Member
Correct... I believe there are two types of debts that are never forgiven (or discharged) in a bankruptcy filing, no matter what chapter you file under. Those are Student Loans and IRS Debts and are considered priority unsecured debts. Besides, don't you have to list everything on a petition anyway? That's what I was told... list all debts, down to the last penny...
 
Just to clarify, there are actually EIGHTEEN categories of non-dischargeble debt, and they're all listed in section 523(a) of the code. Student loans are NOT priority debts, but they are dischargeable only on a showing of undue hardship. That means they can sometimes be discharged, and they are. SOME back taxes are priority debts [see section 507(a)(8)], and the ones that are are nondischargeable. Taxes for which a return was never filed, for which a return was filed late and within the last two years, and taxes for which the debtor filed a fraudulent return or otherwise tried to evade are also nondischargeable.

The superdischarge under chapter 13 covers all but alimony, student loan, and drunk driving debts. The taxes that are priority debts have to be paid in a 13, so they might as well be considered as nondischargeable.

The original poster may or may not be correct that his/her student loans are nondischargeable. I don't think a pro se filer can correctly evaluate that, but the fact that he's paying $250 a month would tend to show lack of undue hardship at lower payment levels. The original poster was not asking whether or not to list the student loans on schedule F; he was asking whether to list the monthly payments on schedule J. I recall someone (JETX?) mentioning recently that districts differ in whether they want this done and in whether the expense should be considered in deciding whether to force the debtor in to a 13. That means that only a local attorney can know the answer to the OP's actual question.
 

kopes

Member
I am currently in deferrment on my student loans. I plan to file at the end of Sept. and my deferrment ends Dec. 12. I was paying $250 a month before the deferrment using what is called an "income sensitive" payment plan. My payments without that plan will be $437 a month beginning Dec. 12.

Does being in deferrment at the time of filing, even if it's only for 2 months, make a difference? I would ask my lawyer, but I have been able to pay his retainer yet. I would like advice from the board in the meantime. Thank you.
 

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