Filing for Bankruptcy

09 Nov Student Loans: “When You’re in a Hole, Stop Digging,” Appeals Court Agrees

The Eighth Circuit Bankruptcy Appellate Panel upheld a lower court's ruling discharging $204,525.00 in student loans, despite the lender's argument that the debtor could have continued her education and sought higher-paying employment as a chiropractor. Shaffer v. U.S Department of Education, No. 12-601o (8th Cir.BAP Oct. 30, 2012), involved an unmarrieddebtor in her mid thirties who filed chapter 7. She started her undergraduate education at the University of Northern Iowa in 1994, and later enrolled at Iowa University, obtaining a degree in psychology in 2002. Afterward, sheattended Kirkwood Community Collegeoff and on, in order to qualify under her parents' health insurance. In 2007, the debtor enrolled at Palmer College of Chiropractic Medicine, but she left after thirteen months after concluding that her student loan debt was insurmountable. The debtor also suffered from depression, eating disorders, self harm in the form of cutting, and anxiety. In 2008 she commenced employment at a women's health clinic, but left one year later. She next worked as an accounts receivable specialist at a different employer, but left after depression caused her to take two leaves of absence, believing she was about to be fired.
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20 Oct How do I file bankruptcy? Duties and Documents in Chapter 7 and Chapter 13.

You can find a comprehensive list of duties related to filing chapter 7 and chapter 13 bankruptcy at 11 USC 521. This list includes acts of filing documents with the court, delivering records to the trustee or creditors, doing some things and not doing other things. Many of these terms have specific meaning related to bankruptcy law and local rules and procedures vary across the county. You should always consult an attorney for bankruptcy assistance. HERE IS AN ABRIDGED LIST of things a debtor is required to file at various times during most cases:
  • a list of creditors;
  • a schedule of assets and liabilities;
  • a schedule of current income and expenditures;
  • a statement of the debtor’s financial affairs;
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