It used to be that a professional degree guaranteed a person a spot in the upper echelon of society. People like doctors, lawyers, or those with a PhD. were guaranteed not only respect but a very well-paying job. Unfortunately, many people are now finding that this is not the case, at least not in terms of monetary compensation. Combine that with the onerous student loans one needs to take out to get these degrees and it becomes a serious problem. Fortunately, a St. Louis Bankruptcy Lawyer can help a professional obtain a Chapter 7 discharge even with these student loans. While this debt generally can’t be discharged except in very narrow circumstance, it may be possible to discharge all other debt and focus exclusively on the student loans.
If more than half a person’s debt comes from business loans, they are not subject to the means test no matter what their income. Thanks to a recent ruling in Texas, it may be possible to have student loans classified as business debt, ensuring a debt discharge with a St. Louis Bankruptcy Lawyer for those who make more than the median but still not enough to make ends meet.
Under section 707(b) the means test only applies for those whose debt is made up primarily of consumer debt. In the case in Texas, In re De Cunae, a man took out almost $250,000 in loans for a dental degree. When his business failed, he sought Chapter 7 protection from his creditors. The court found that because $210,000 of the debt was for things like tuition, books, etc. directly related to his professional degree, it could be classified as business debt.
This is important and could help many professionals who feel they will be required to file Chapter 13 to get out of debt. If you have questions about your debt and have massive student loans, a St. Louis Bankruptcy Lawyer may be able to qualify you for Chapter 7. For a free consultation, contact The Westbrook Law Group today.