- Ninth Circuit BAP No. WW-14-1551-FJuKi
- Applying the three-part Brunner test, Appellant failed to meet her burden to demonstrate undue hardship while attempting to discharge her student loan debt pursuant to 11 USC § 523 (a)(8). Under the second-prong of the Brunner test, Debtor failed to demonstrate that "additional circumstances" existed to indicate that her state of affairs will persist for a significant portion of the repayment period. More specifically, the lower court did not err when it considered several of Debtor's self-imposed job search limitations and found that her financial hardships are unlikely to persist.
- Procedural context:
- Appeal to the ninth circuit BAP from the Western District of Washington bankruptcy court on its adversary proceeding judgment affirming that the student loan debt was nondischargeable.
- Debtor was age 40 with three children aged 17, 3, and 1. Her estimated monthly income was less than $1960 per month and her monthly expenses exceeded her income by more than $695 per month. Debtor had consolidated student loans with a current outstanding balance of $16,000. Since 2004, Debtor paid $1240 on the student debt. While possibly unable to work in the field of her degree, Debtor had previously been employed at temporary jobs paying from between $12 to $25 per hour. Debtor had been unemployed for about two years but had limited potential future employment by impermissibly limiting her employment search to a certain geographical location, a job in her field, and an hourly rate of $25 per hour.
- FARIS, JURY and KIRSCHER, Bankruptcy Judges
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