MasConcepts Incorporated

I posted a couple months back in a panic, but wanted to update, as we have a unique situation and I am hoping it will help someone.

TLDR: Joint filing, above median, total debt too high for a chapter 13 due to outrageous student loan debt. Non-consumer chapter 7.

My spouse and I have a lot of debt, like a lot. We have combined 600k in student loans (most federal, 20k private, 2 doctorates). We also have 90k in unsecured debt, and 10k on back taxes. I wont get into why, but this is where we are. We make above median, but not enough to tackle all of this. I spoke with 2 lawyers back in the fall and no one wanted to touch it with a 10 foot pole. Said my total debt was too high for a 13, and my income was too high for a 7. We were at an impass, with the lawyers shrugging and saying “maybe an 11?”. Finally I found a lawyer who didn’t bat an eye. They specialize in student loan debt and does the highest number of adversary proceeding for student loans in the region. They said we could file a chapter 7 due to our debt being primarily non-consumer. Because the highest portion of our debt was student loans for grad school, our local trustees are open to considering that nonconsumer debt.

We filed end of January, and had our 341 today. I was prepared for an intense 341 due to the nature of our case. It was so straightforward and easy. Boring yes-no questions they ask everybody, nothing special. Lawyer says they don’t see any issues and it should never smooth sailing now.

All that is left to do now is wait the 60 days and keep fingers crossed. Adversary proceeding for the student loans is likely in our future.