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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Even though they cant be discharged, do student loans count

Resolved Question:

Even though they can't be discharged, do student loans count towards a person's total debt load in bankruptcy? Once repayment starts, it seems there is no other way to keep up.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 7 years ago.
Hi JACustomer,
Is this regarding a Chapter 7 or a Chapter 13 bankruptcy?
Which of your debts are to be included in the consolidation loan?
What is the Public Service program?
Customer: replied 7 years ago.
Chapter 7. The consolidation loan is only for student loans totaling approx. $50,000. My unsecured debt is approx. $20,000. My yearly is AGI approx. $36,000 - $2100/month. My total monthly living expenses minus food, entertainment, etc is approx. $1700.

The Public Service program is run by the Feds and discharges student loan debt after 120 montly payment for those who work for certain government agencies. It is not applied for before hand and will take effect alter on in the loan's life.

Any thoughts. I live in NYS, Richmond county.
Expert:  cfortunato replied 7 years ago.
If you are already making the student loan payments, you are supposed to include these in Schedule J (Current Expenditures). In general, secured debts and debts that are non-dischargeable are allowable expenses.
When you fill out Schedule J, you want the total expenses to be very close to the Schedule I income.

Edited by Christina Fortunato, Esq. on 6/3/2010 at 3:42 AM EST
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