student loans and the means test

[debtor36K]

Is there a line for adding a student loan expense since it is not dischargeable? Thanks!

[JRScott]

You might could use the other or misc line.

[BKParalegal]

Actually as screwy as it is, there is not a place for Student Loans in the Means test nor in Schedule J, as well as it cannot be figured into the budget regarding a Chapter 13. The main reason they do this is because so many people have large balances in school loans that everyone could pass the means test and no one would have to pay unsecured creditors in a chapter 13 because their student loan payments would eat up most of it, hence why they are automatically deferred in a 13. Just one more way the creditor lobbiest screwed you.

Good Luck

[liz417]

Actually as screwy as it is, there is not a place for Student Loans in the Means test nor in Schedule J, as well as it cannot be figured into the budget regarding a Chapter 13. The main reason they do this is because so many people have large balances in school loans that everyone could pass the means test and no one would have to pay unsecured creditors in a chapter 13 because their student loan payments would eat up most of it, hence why they are automatically deferred in a 13. Just one more way the creditor lobbiest screwed you.

Good Luck

Actually, we have a few posters who have included their student loans in a chapter 13 repayment program...I guess it just depends on the trustee.

[BKParalegal]

I seriously doubt it. The BK code is very specific about student loans and the way they are to be treated in a Chapter 13, but stranger things have happenned, I guess.

[MomIcantFindmy]

Most of the time I have seen student loans put into deferment while you are in your 13. Hence the reason there is no line for student loan expense. While this is not optimum the trustee can require it in order to give your creditors more of your disposable income.

[rwphil]

Here's an example in Indiana where the court allowed student loan payments on the means test. This ultimately resulted in a Chapter 7 for an above median filer.

http://www.************************/...means-testing/