Chapter 7 Student Loans as Buisness Debt

[slbank7]

What is the name of your state? Pennsylvania

I have 200K in student loans. I have 55K in credit card debt.
Am I eligble for Chapter 7 buisness debt exception? I make 100K and receive 3000 in child support monthly. I pay 2500 of this child support directly to childcare. I have 10K in legal fees from family lawyer (not court ordered to other party) that I hope to discharge? I have an overpayment (i owe obligor) of 15000 in support overpayment. I own no home. I own no car. My rent is 2500/month (all utilities included).

I have 16000 I am jointly on in a credit card with a parent that I know will not be able to be discharged as they are finacially stable.

 

[LdiJ]

What is the name of your state? Pennsylvania

I have 200K in student loans. I have 55K in credit card debt.
Am I eligble for Chapter 7 buisness debt exception? I make 100K and receive 3000 in child support monthly. I pay 2500 of this child support directly to childcare. I have 10K in legal fees from family lawyer (not court ordered to other party) that I hope to discharge? I have an overpayment (i owe obligor) of 15000 in support overpayment. I own no home. I own no car. My rent is 2500/month (all utilities included).

I have 16000 I am jointly on in a credit card with a parent that I know will not be able to be discharged as they are finacially stable.

I am not entirely sure that I know what you mean by "business debt exception" but is that 100k your gross business income or your net profit?

 

[slbank7]

I am salary W2 earner.

If the majority debt is "not consumer" then you do not need to do the means test for chapter 7? Are student loans consider non consumer?

 

[HRZ]

I don't think Federally insured student loans can be discharged in bankruptcy ...absent some extreme hardship issues ...which I doubt apply as you appear capable of earning a rather decent income . .... .

 

[slbank7]

Im not trying to discharge my student loans. I would like to discharge my consumer debt: credit card and legal bill. I would like to File Chapter 7 with the buisness debt exceptions to the means test. Where if buisness debt is greater than consumer debt you do not need to do a means test. Im questioning if student loans can count as buisness debt.

 

[LdiJ]

Im not trying to discharge my student loans. I would like to discharge my consumer debt: credit card and legal bill. I would like to File Chapter 7 with the buisness debt exceptions to the means test. Where if buisness debt is greater than consumer debt you do not need to do a means test. Im questioning if student loans can count as buisness debt.

No, they do not count as business debt.

 

[Just Blue]

Im not trying to discharge my student loans. I would like to discharge my consumer debt: credit card and legal bill. I would like to File Chapter 7 with the buisness debt exceptions to the means test. Where if buisness debt is greater than consumer debt you do not need to do a means test. Im questioning if student loans can count as buisness debt.

Unbelievable.

 

[HRZ]

Apparently some courts vary as to if student loans are consumer debt or non consumer debt

 

[slbank7]

Yes I wasn't sure if anyone had any information./experience.

Also are legal fees dischargable?

 

[despritfreya]

Google:

In re Ferreira, 549 B.R. 232 (Bankr. E.D. Cal., 2016)

for an analysis of the issue you raise.

I do not think the 3rd Circuit has ruled on this so you need to find out if there is case law in your State on the issue and/or how the Office of the US Trustee in Pennsylvania deals with it. If there is no definitive answer you need to decide if you want to be the "test case" should the issue arise.

In my State the UST deems the loans "non-consumer" at least to the portion one can prove was NOT used for living expenses.

Des.

 

[dsouzalegal]

If you have more business debt than consumer debt, you won't need to meet income requirements before getting qualifying debt wiped out in Chapter 7 bankruptcy.

 

[quincy]

If you have more business debt than consumer debt, you won't need to meet income requirements before getting qualifying debt wiped out in Chapter 7 bankruptcy.

dsouzalegal, it helps to read the thread before responding.