In this case, the debtor filed a Chapter 13 Bankruptcy proposing to repay his student loans in full, but also proposing to repay zero percent to other unsecured creditors. The debtor owed about $5,250.00 on unsecured student loans. He also had $19,415.00 in other unsecured loans. In this case, debtor’s student loans would not have […]

Here, the court noted that a student loan would not be a dischargeable debt in bankruptcy unless the debtor could prove undue financial hardship and a poverty level income. Here, the debtor’s income was sufficient to slowly repay the student loan, and the debt was, therefore, nondischargeable. Cadle Company v. Sheila Webb, 132 B.R. 199. Author: […]

By Charles R. Harroun, Attorney at Law Court rules Credit Card Charges Nondischargeable. In this case, the debtor used her VISA card for cash advances in excess of $4,000. The cash advances were used to pay past due house payments as well as other past due debts. A small portion of the cash advances were used […]

By Charles R. Harroun, Attorney at Law Chapter 7 Bankruptcy Dismissed for substantial abuse. In this case, the issue was whether debtor’s Chapter 7 bankruptcy should be dismissed since debtor appeared to have the ability to repay his obligations. Debtor was employed as a sportscaster earning about $170,000 per year; debtor had unsecured debts of […]

By Charles R. Harroun, Attorney at Law Trustee submits Motion to Dismiss Chapter 7 Bankruptcy.  The case of In re Morris, 153 B.R. 559, held that the Bankruptcy Code section which bars the court from dismissing a Chapter 7 case for “substantial abuse” at the request or suggestion of any party in interest, does not prevent […]

In one of the last opinions issued by U.S. Supreme Court Justice Marshall, the Supreme Court held, in the case of Curtis Johnson v. Home State Bank (111 S. Ct. 2150) 1991, that a creditor’s secured home mortgage loan survives a debtor’s Chapter 7 filing for bankruptcy. Here, the debtor defaulted on a promissory note […]