DebtDoc Bankruptcy News Blog

Thursday, 03 May 2018 20:29

Chapter 13 Eligibility

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Nothing can be more frustrating to a person who needs to restructure their personal finances than their inability to work with the creditors they owe. More often than not, the creditors want far more per month than they can afford. That is when seeking the advice of attorney Chris Bush becomes so necessary.

When a client wishes to pay their creditors back, I help them arrive at a monthly payment they can afford. I use the Chapter 13 Bankruptcy process to accomplish this. I look at all their reasonable expenses and all their income, and assist them with developing a solid payment plan that they can fit into their household budget. That is the disposable income that can be used to fund a monthly Chapter 13 plan.

Not everyone is eligible to be in a Chapter 7 Bankruptcy because of their income, or their net worth. This will make them ineligible for a Chapter 7, and leave them with no other alternative but to be in a Chapter 13 repayment plan.

Not everyone can be in a Chapter 13 Plan because there are limitations to the amount of money that is owed. These debt limitation are spelled out in the Bankruptcy Code at 11 USC 109(e), Chapter 13 Eligibility.

At first glance, the limits seem beyond any limitation a typical person contemplating a Chapter 13. We often see the amount of Student Loan Debt, coupled with all the other unsecured debt, may go beyond these limits. Read more here about Student Loans.

Recent Trend

I have been following the developments in this area. There are two recent cases that have been decided which ease the Chapter 13 debt limitation if there is substantial student loan debt. One Judge out of Illinois issued a ruling indicating that there should not be any debt limit where the vast majority of unsecured debt is student loans.

A second judge ruled the exact same way just a few months later.

This issue has yet to be decided in the 9th Circuit, so we can only wait and see how the Judges in the Southern District of California would view this issue. Of the leading cases involving somewhat similar facts, albeit not student loans, these Courts ruled that Chapter 13 eligibility may very well be a moving target.


Are you interested in learning how this amendment could affect your student loan status? Call (619) 295-3322 to schedule your free initial consultation with Chris Bush today.

Student Loan Lawyer | Chris Bush
We have a new sister website dedicated to Student Loan Debt Resolution. Please visit San Diego Student Loan Lawyer for more information regarding options for management and settlement of your student loan debt.

Read 1249 times Last modified on Friday, 06 December 2019 19:43
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

More in this category: « Chapter 13 - Student Loan Debt

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Auto Loan Delinquency Rising

Late Car Payments?

The number of people 90 days late in car payments approaching peak levels since the subprime crisis of 2010.

If you’re late on your car payments, come in for a Chapter 13 consultation!

Compassionate. No-nonsense. Great job. Saved me $85K!

I had three choices: two large groups, or DebtDoc. I chose DebtDoc because of their numerous excellent reviews from clients as well as other attorneys. Also, I wanted someone to provide personal service and have a vested interest in my difficult student loan case.

I certainly made the right choice. DebtDoc's attorneys personally answered two of my phone calls and regularly answered my emails, even on one Sunday evening.

After 30 years of student loan "prison", he got me freedom AND he even got the US Dept. of Justice to dismiss 25% of my loans, which saved me $85K.

I feel like I have a new lease on life because of DebtDoc. I wish I could recommend 10 stars.

Client Testimonial

To whom it may concern,
DebtDoc's attorneys are extremely knowledgeable with the complexities of Federal Student Loans.
I went from a thriving career to full medical disability, ending with an SSDI placement. Unfortunately, I lost everything and became unable to continue making the student loan payments, so it was in deferment for over five years. When the SSDI settled I tried to negotiate an affordable payment plan with the loan holders but they refused my efforts, instead demanding over twice the amount I could afford.
I contacted DebtDoc and found them to be courteous, responsive and quick to assess my situation. They were sure they could help and took time to answer all questions, which relieved much anxiety. Within months they successfully resolved the debt! With much confidence, I highly recommend DebtDoc.

Clients with Student Loan Debt

Clients with Student Loans

Some information I need to evaluate your Student Loan options is contained in your National Student Loan Data System Report. Instructions for obtaining this report are available on my web site at Simply print/save the reports as a PDF, of all pages. Please DO NOT "DOWNLOAD" THE REPORT from the link - this creates a text file that is very difficult to read; please print the web page as a PDF file - the summary page of all loans AND the individual reports for each loan. Samples of these pages can be viewed by clicking the respective links in the previous sentence. I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.

I have prepared a brief questionnaire for you to fill out to provide me most of the information I will need. Please click this questionnaire link and provide me with the information listed. I would also like to see copies of your most recent pay stubs or other income information.

My office is located at 2727 Camino Del Rio South, Suite 135, San Diego, CA 92108. The main entrance to the building is on the right/west side. I am on the first floor; when you enter the building, turn right and I’m in the suite at the second door on the left. If the suite door is locked, please call or text at 619-678-1134 and I will let you in. (Unfortunately, I usually can’t hear a knock at that door.) I look forward to meeting with you and assisting you on your path back to financial freedom.