Yes. Parent Plus loans do not qualify for any income driven repayment plan. However, if you consolidate the loans into a qualifying loan, you can apply for an income contingent repayment plan.
Can an LLC judgment creditor “pierce the corporate veil” and hold a Chapter 7 debtor personally liable for that debt?
It depends on the facts and circumstances of each case. An Oklahoma bankruptcy court held that a judgment creditor could not pierce the corporate veil under Oklahoma law to hold the Chapter 7 debtor personally liable, as the sole owner of an LLC, for the creditor’s judgment debt against the LLC, in a proceeding to…
Are the Chapter 13 “Debt Limitations” determined by the creditors’ claims?
No. In a recent Illinois case, the court held that the Chapter 13 debt limits were determined by schedules filed in good faith, not by amount of thecreditor’s proof of claims. If your secured debts (mortgages and liens) add up to more that $1,184,200, or your unsecured debts add up to more than $394,725, Chapter…
Can Debtor’s be obligated to repay a student loan co-signer post discharge?
Yes. An Illinois Court held that a Debtor’s obligation to repay her former father-in-law who had co-signed her student loans prepetition was postpetition debt that was not discharged: Even though the Chapter 7 debtor’s former father-in-law co-signed her student loans prepetition, the debtor’s obligation to repay her former father-in-law for his postpetition payments on the…
Can a Chapter 7 trustee avoid a state divorce court’s award of the former marital residence to a debtor’s former wife?
No. The 7th Circuit Court of Appeals held that the Chapter 7 trustee could not use the strong-arm powers under Code § 544(a) to avoid a state divorce court’s award to the debtor’s former wife of his one-half interest in the former marital residence as part of the divorce court’s distribution of marital property. The…
Can you deduct anticipated taxes liabilities on the means test?
No, in a recent New York decision, the court held that only taxes actually paid can be included in the means test. Line 16 of Form 122A–2 is clear and unambiguous in permitting a debtor to deduct, as an other necessary expense in the means test, only the amount actually owed for taxes. See In…
Can you deduct operating expenses for two vehicles on the means test if you live in a one person household?
Yes, in a recent New York decision, the court ruled that under the plain meaning of the Bankruptcy Code, a debtor in a one-person household who actually incurs operating expenses for two motor vehicles may claim a deduction in the means test for operating expenses for two vehicles, even though the Internal Revenue Service manual…