Please ensure Javascript is enabled for purposes of website accessibility

U.S. BANKRUPTCY COURT, WDNY – Presumption of Abuse: In re Jeffrey R. Howell and Rebecca L. Howell

Daily Record Staff//September 28, 2012//

U.S. BANKRUPTCY COURT, WDNY – Presumption of Abuse: In re Jeffrey R. Howell and Rebecca L. Howell

Daily Record Staff//September 28, 2012//

Listen to this article

U.S. BANKRUPTCY COURT, WDNY
Presumption of Abuse

Student Loans — Special Circumstances
In re Jeffrey R. Howell and Rebecca L. Howell
11-12685B
Judge Bucki

Background: In this Chapter 7 case, the trustee moved to dismiss on the grounds that granting a bankruptcy in favor of the debtors would constitute abuse. At issue was whether the obligation to pay a non-dischargeable student loan can serve as the kind of special circumstance that would overcome the statutory presumption of abuse.
Ruling: The court denied the motion. The court held that the non-dischargeable student loan debt is a necessary expense. The court concluded that a conversion to a Chapter 13 plan would not be a reasonable alternative as the debtors would end up owing more because interest would continue to accrue during the lifetime of the Chapter 13 plan.
Jill M. Zubler of the Office of the U.S. Trustee; Thomas A. Steffan of Cooke & Steffan for the debtors

Case Digests

See all Case Digests

Law News

See All Law News

Polls

How Is My Site?

View Results

Loading ... Loading ...