Student Loans included as Monthly Expense?

[mysterie91]

After reading the post below about Schedule I and J compared to the means test I am getting nervous. Means test shows us with negative amount each month BUT...

Schedule of Expenses shows us negative with student loans ($306.11 per month) but with a disposable income of about $200 without including the student loans. I am confused as to whether they will be included or not.

I know in a Ch 13 they would not be in the Expenses Schedule as they would be part of the plan, at least that is what the attorneys we met with said, but in a CH 7, would that be different? We are going to be a "tight" Chapter 7 as it is. Seems silly that they would not be considered a monthly expense.

I have looked over my figures and I am taking everyones advice and finding all expenses. I also took the new expense figures from the trustee/irs site and am adjusting with those as well.

Can anyone clear this up for me? We are in the process of trying to save up the fee and gather all the paperwork together for a November filing.

[coma]

The law makes no special allowance for student loans, save that they cannot be discharged. In a 13, they are generally put into forebearance because some trustees do not allow payment, but continue to accrue interest, often making the amount owed terribly larger than originally owed. I know that they can also, in some instances, be included in the Chapter 13 plan but still have to be paid 100%.

As far as including them on Schedule J as an expense, I believe YMMV by district and trustee. Some may allow it and many do not, as the loans are in forebearance during bankruptcy.

[mysterie91]

See this is why I am so confused.

I remember the last attorney we met with and liked saying well at your income there is no way you will qualify for 7 and started looking at 13 so I had the loans on the Expense statment andf he took them off. He said that here most trustees want the student loans included in the Ch 13 payment and whatever is left over as due after the 5 years of paying the 13 you must continue to payback.

Then he looked over our our figures and started the means test for a Chapter 7. Anyway, when he switched to the 7 saying it would be a really tight case I**thought** he said that in a 7 they are included on the expense sheet as in a 7 they would be a monthly expense just like before BK. Does that make sense?

[lrprn]

Does that make sense?

mysterie, there's no way anyone here can say whether it makes sense or not. There's tremendous variability in how districts and even trustees within the same district handle student loans in bankruptcy - 7 or 13. If your lawyer says it's this way for you, then that's the most reliable information you are going to get. I wish our congressional reps had been a lot smarter back in 2005 when they passed this mess of a bk law.