Interesting SL bk ruling

[keepmine]

Looks like ya need a roomie and don't start school when you're old.

More proof {if any is needed} that SL's just don't go away. Handle with care.

 

Debtor Needed Roommate To Satisfy Brunner Test

 

The failure of Chapter 7 debtor who had no dependents and lived in a three-bedroom home to take on a roommate to bring in some extra income was a failure to maximize the debtor's income and prevented her from satisfying the first, "minimal standard of living," prong of the Brunner test for "undue hardship" discharge of her student loan debt. Moreover, the bankruptcy court's determination that additional circumstances existed indicating that the debtor's present financial difficulties were likely to persist, as required by second prong of the Brunner test, was clearly erroneous, to the extent based on the fact that the debtor decided to pursue her advanced business degree late in life, graduated with her degree only at age 45, and was in her mid-fifties when she sought to discharge her loans. Educational Credit Management Corp. v. Valerie Degroot, 2006 WL 648067 (D.Or., Judge Mosman).

[legaleagle]

Anyone ever heard of an indentured servant?

[LynnInMN]

I can't find anything on this case thru a google search.

 

It says she "lived" in a three bedroom home...doesnt say whether she owns it or rents it. Either way it doesnt sound like she tried very hard to minimize her expenses.

[TxQuiltGirl]

Anyone ever heard of an indentured servant?

 

 

No. Don't take this there.

[keepmine]

WL means, it's found on West Law. That's an expensive service. I just haunt a site where WL will provide a brief overview of cases of interest. I'll try and find it on pacer when I have a bit of time.

I found a case sometime back where a petioner trying to discharge studen loans had her expenses picked to death. I do remember the judge saying $45/month for haircuts was excessive.

Not trying to start any political discussion. Just a FWIW about the difficulty in discharging SL's in bk.