Schedule J and School Loans - Confused

[ndcm]

Hi everyone,

I'm seeing on here that we should not add our school loans to Schedule J. However, I should really factor in the loans as an expense because I am actually paying every month for it right? The loans can no longer be deferred as we did that already in the past. I understand it cannot be dismissed and we are going to continue to make payments to it so yes, it's a monthly expense...right?

Thanks for your help!

[nc73]

Depends on your district. Ask your lawyer. In my district student loans can be added to schedule J.

[StartinOver]

I can't answer your question, but I have the same situation. However, just in case it's helpful, I did find out that even after the normal deferrments and forbearances are all used up, you can sometimes get a hardship forbearance if you send a hardship letter which details what the cause of the hardship is in detail, what you're asking for "x months of forbearance" and explains what your good faith effort will be to get back on schedule when the forbearance period you're asking for is over.

Waiting here with you to hear from someone who can answer your schedule J and student loan questions...

[waldo05]

same boat here as well. I have used up my forberance and deferment (hardship is also used up) I am in az, and my wife and I have about 700/mo in loan payment with 590 of that being mine with payments that have to be made starting in June. If we can count them, we will pass the means test being over the median, if not we will miss it by about 400....anyone in phx used them as an expense on your schedule J and qualified for a ch 7 over the median?

[ndcm]

Depends on your district. Ask your lawyer. In my district student loans can be added to schedule J.

Thanks NC73 - I'm doing this all pro se (I know, yikes)...I think our district/trustee might let it slide but I'm anxious nontheless

[HHM]

You can put whatever you want on schedule J, the issue is whether the U.S. Trustee will accept it. You cannot put student loans on the means test and that is the real issue. If the means tests shows you have disposable income and the only thing in schedule J that shows you don't is your student loans, you will end up a chapter 13 9 ways to Sunday. So be careful.

[ndcm]

You can put whatever you want on schedule J, the issue is whether the U.S. Trustee will accept it. You cannot put student loans on the means test and that is the real issue. If the means tests shows you have disposable income and the only thing in schedule J that shows you don't is your student loans, you will end up a chapter 13 9 ways to Sunday. So be careful.

Thanks HHM - When I did my calculation of monthly income for exclusion on the means test, I actually fell below the median and didn't have to continue.

[nc73]

Easy way to find out if your district allows student loans on sched J is to call any attorney's office and ask the receptionist. Most will know the answer.

[liz417]

As everyone said, "it all depends on your Trustee/District" I was able to put my student loans in on my expenses and I'm in Calif.

[SMinGA]

In many districts the student loans go into deferment (or forbearance, I forget which is which) during a ch. 13 plan. Its not based on your normal ability to postpone payments, but is due to the bankruptcy case.