Tag: Incur Debt

Bankr. E.D.N.C.: In re Alomia – Denial of Motion to Incur Debt


The bankruptcy court denied Mr. Alomia’s motion to incur student loan debt to attend the Texas Southern University in Houston, Texas as he was delinquent on his plan, which was not yet confirmed.


While delinquency on plan payments would indicate that a debtor would be unable to presently carry a greater debt burden, federal student loans as sought here would not become repayable for 6 months following the borrower’s completion of school, so it is not clear how these loans would impair his ability to perform under the plan.

Further, Mr. Alomia appears to have relocated to Houston and one might suspect that the recent Hurricane Harvey may have impeded is ability to both make his most recent plan payment and also participate in the confirmation of his plan.… Read More

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