The Eight Circuit Bankruptcy Appellate Panel denied an application seeking to discharge student loans because the debtor voluntarily quit a full-time job eight months prior to filing bankruptcy.
The debtor, Erin Kemp, is a 36-year-old single mom raising a 13-year-old daughter in Arkansas. She obtained a psychology degree in 2010 and for the past 17 years she worked for a bank earning up to $45,000 per year. However, eight months prior to filing bankruptcy she quit her full-time bank job due to problems with depression and anxiety and took a part-time job at Lowe’s earning $13.46 per hour. She supplemented her income by performing home daycare services as well.