66 East Main Street, 3rd Floor Little Falls, NJ 07424

Court States Debtor Underemployed Due to Self-Imposed Restrictions.

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August 8, 2018

Background as to Debtor:

  • Enrolled in Southern Illinois University from 1982 – 1985 but did not graduate
  • Completed his undergraduate studies at Arizona State University and earned a bachelor’s degree in mathematics and statistics in 1989.
  • Obtained a Master of Business Administration from University of Texas in 1995.
  • In 2010 the debtor received a Master of Art in Communications from Governor’s State University.
  • Education was 100% financed.
  • Only paid back $140 of his student loan debts and was on a zero-pay plan due to his low wages.
  • Filed for Chapter 7 Bankruptcy in November 2015
  • Only worked at a flower shop during the Spring, lived with his Aunt and only contributed to household expenses.
  • Was 52 years old and after paying expenses had discretionary income.
  • Petitioned the Court that his Student Loan debt should be discharged as part of his bankruptcy.
  • Claimed he had a learning disability which affected his speech and suffered anxiety.

Court Finding:

  • Debtor’s representation of himself and written papers to the Court were very clear and well done.
  • Although the Debtor stuttered at times, he presented his case well and was very clear.
  • Debtor even argued evidentiary objections at the pretrial conference.
  • Debtor was very well prepared in the case and organized in his legal arguments.
  • Court found that there is no basis for concluding that with his advanced degrees and capable pro se representation, the Debtor lacks marketable job skills.
  • Debtor did not make any good faith effort to repay the student lean and gave no explanation to the Court.
  • Debtor’s student loans were not excepted from discharge; he owed the student loans in full.
  • Debtor was underemployed due to self-imposed restrictions.