Means Test and Student Loans

**jin99** · 12-07-2008, 01:43 PM

My question involves bankruptcy in the state of: Colorado.
I have a question about the means test and if federal and private student loan debt/payments can be included in the means test. The reason I ask is that I did an online form to see if I should do chpt 7 or 13 and if I include my debt for all my student loans, it obviously suggests chpt 7 but if not, then of course chpt 13. Just curious if it is common practice to allow fed and private loans into the means test.

**M'sta Mikey** · 12-07-2008, 02:23 PM

Your ability to file Ch. 7 vs. Ch. 13 is based on your ability to repay, which is based on your income, not the amount of debt you have, including student loans.

Federal/Student loans are not dischargable under bankruptcy and must be paid back.

**jin99** · 12-08-2008, 10:53 AM

Quoting M'sta Mikey

Your ability to file Ch. 7 vs. Ch. 13 is based on your ability to repay, which is based on your income, not the amount of debt you have, including student loans.

Federal/Student loans are not dischargable under bankruptcy and must be paid back.

I was actually referring to the total unsecured debt used for the means test (i.e. I have over $150k in student loans). I just started looking at filing for bk and have not talked to a lawyer yet. When I do the online means test, I am questioning if I can include my private student loan debt as part of my unsecured debt which would qualify me for ch 7. However if I cannot include in my unsecured debt and forced into ch 13, I would assume my $1500 a month private student loan payment would be part of my repayment schedule.

**gigirle** · 12-08-2008, 11:01 AM

You can't write off your student loans. Most consults to bankruptcy attorney's are free.

**jin99** · 12-09-2008, 09:53 AM

Yes, I understand that it is hard to get private, unsecured, high interest career/alternative/private loans discharged. That is not my question actually. If I am responsible for a $1600 private student loan payment is that then considered a priority payment and taken out first for ch 13? The $1600 a month payment would be way more than my disposable income. I have read that some cases include a payment to your private and fed student loans within a ch 13 and after that is finished, you go back to making your regular payments to the student loan companies (they are not discharged). To qualify for chapter 7, even though my student loans are not eligible for disharge, are the student loans used to calculate your total debt in the means test or do they just leave out your student loans completely? I really do not need another answer stating that student loans cannot be discharged....that is not what I am asking.