Surplus Income Payment

October 10th, 2006 by Questions

I have student loan and have been paying every month. I also owe amounts to credit card companies.
If I was to go banktrupt and still pay my student loan during banktrupcy would it
considered as deduction?

For example, I take home $1900 every month. If I was to pay $200 for my student loan every month, would this $200 deducted from my monthly income (1900-200 = 1700) and report as $1700 take home?




One Response to “Surplus Income Payment”

, A licensed trustee said:

Unfortunately, it would not. You have the option of stopping your student loan payment s while you remain an undischarged bankrupt and therefore the Court considers these payments as “discretionary” (you make a conscious choice to continue to make the payments).

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)