Student Loans

[Anonymous]

My wife and I filed for Chapter 7 in January of this year. We have reaffirmed our house and car but discharged the other debts. We were under the assumption that student loans were not dischargable. When I try to go to my Online account it says "Activity Suspended". On hers it says No Payment Due. We had them both on Automatic Draft, but they have discountinued the drafts. We took out really small loans( Less than 10K) for living exspenses so we were not sure if these were Private Student Loans. We had them consolidated and I know mine was done thru Bank of America but I pay ACS. She pays AES, but I am not sure who she consolidated with. I have reached out to our attorney but I wanted to see if anyone else had any experience with Student Loans in Bankruptcy. We are trying to pay because we do not want to have any late payments as we rebuild our credit.

[Anonymous]

They don't automatically discharge but you can try for an undue hardship discharge. That would require an adversary complaint be filed (this is where having an attorney will come in handy) and that you actually need it or you may be accused of filing frivolous claims.

I'm trying to discharge mine pro se and it's a nightmare! But...my student loans are over $60,000 so it's worth the fight!

[Anonymous]

when you file for bk student loads and the irs stop collects but only temp. same thing happen to me after approx one year post bk started again with interest.

[BlovemeRen]

I also have student loans and when I check my credit reports they are listed as Included In Bankruptcy. So, I was worried and I called Sallie Mae because I knew that I did not include them, and I was told that any time someone files bankruptcy the loans will automatically say Inluded In Bankruptcy and any interest charges will stop until after you are discharged and they recieve a letter from your lawyer. A Sallie Mae representative told me that it can take up to 30 business days for the loans to start reporting as current again, that is after they receive the letter.

[StartinOver]

ejlambster

Were you successful in discharging your school loans pro se`? Please tell us about how it went.

[0REDSOX7]

When you file for BK and include the debts in your petition (which you are required by law to do), your student loans go in to what is known as Bankruptcy Forebearance.

This means that you are not responsibile for making the payments while your BK case is processed.  The lenders cannot legally collect the debt (draft from your account) until your case is either discharged or dismissed.  You will not be penalized for skipping these payments.  What happens is the interest now becomes capilatized and becomes part of your new loan balance.

Now, you can continue to make payments on your own to avoid the capitalized interest issue if you want.

Also - they will report your student loans as a zero balance and that they are IIB - HOWEVER - once you are discharged, this will likely stop and reporting will resume.  Some student loan providers will set up a new account and close the old one (but all reporting history will carry over). I would advise you, once discharged, to contact your providers and ask when the next payment is due.  In my personal experience, two of the three student loan providers sent a statement, and the other did not.

Hope that helps!

[MarineVietVet]

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@StartinOver wrote:

ejlambster

Were you successful in discharging your school loans pro se`? Please tell us about how it went.

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The poster has not been online for almost two years. Just a FYI.