Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I keep my house if I file bankruptcy?”
Given how hard it is to get out from under student loan debt, it comes as no surprise that less than 1,000 people try the impossible feat every year. The Wall Street Journal recently ran an interesting piece on the subject that detailed five examples of outrageous demands made by lawyers for lenders (including the U.S. Department of Education) to explain to judges why student loan debt should not be forgiven. We intend to go through all five of the crazy explanations, with the fourth one appearing below.
A 2007 case out of Kentucky serves as an especially maddening example of how far some lenders will go to urge bankruptcy judges to deny the discharge of student loan debt. In that case, the woman filed for bankruptcy on her loans asking that she have her $23,000 student loan debt discharged.
The woman’s debt was accrued while she was enrolled in a culinary arts program with Sullivan University. Sadly, she was forced to drop out before receiving her degree due to pregnancy complications. That meant the woman had nothing other than a high school diploma to list on her resume when out job hunting.
The lenders fought back tooth and nail, saying that the divorced 26-year-old mother of two young children (ages one and two) should have gotten a better job than the one she had. Though it’s hard to imagine the woman would have turned down a high-income position, she was forced to take a job at a local casino earning only $9 per hour.
The lenders apparently took exception with her income, saying that the woman was wasting her prime income-earning years on a low paying position. The lenders also noted that the woman should consider taking on an additional part-time job, to supplement her existing full-time position. They told the judge that though she was already gainfully employed, she could always work more.
In this case, the woman withdrew her bankruptcy petition before the judge was able to rule on the issue, instead choosing to enroll in an income-based repayment program that would lower her monthly payments to a level she felt she could afford.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
“Things Student Loan Lawyers Ask Borrowers Who File For Bankruptcy,” by Katy Stech, published at WSJ.com.
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