Now Updating
In re Zachary Allen ; Tiara Donegan

Summarizing by Lars Fuller

Ng-A-Qui v. College Assist (In re Ng-A-Qui)

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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