Question about private loans after filing

[cyn5]

We are considering filing for bk due to high cc debt and most of all our student loan debt (private loans through AES and Sallie Mae). I have read varying accounts as to what happens after you file. When you file for ch 7, obviously you get an automatic stay...but as soon as your case is closed, can the private student loan lenders demand the full amount right then and there? I am almost thinking it is better to file for ch 13 to get the student loans either included in your payment or at least you are protected from them for 3 or 5 years. I just started researching all of this and am not too saavy on how everything works. It seems you cannot discharge any type of student loan...even a private, high interest, unsecured loan that was taken out to pay for living expenses while in school! I am also wondering if in order to get some of your private loans discharged, if it would be possible to prove that your loans were not used for your education, but for other things such as rent, living expenses etc, especially if you were not working and had no other income! Yes, I know...I need to talk to a bk attorney...but just wondering if anyone has any recent experience on the private loan area. Thanks!

[danaf]

You should have this moved to the general bk talk area. You'd get more resonses.

I don't think you can include student loans in 13 repayment but I could be wrong.

And you don't have to pay up all after bk7 discharges. Although I'd recommend to pay the interest on the gov loans, and try to pay the monthly private ones while in bk. You don't want Sallie Mae messing with your interest rate after bk and paying during bk is the best way to manage that outcome.

[nitsuj]

I actually had to call sallie mae, i expected to be paying them through out the ch7 i filed, when i went to login to the website, it said to call them, i spoke with someone and they essentially told me that it just froze my account, no payments due, interest does get charged, they told me that i would resume regular payments 30 days after they got notice that the case was closed, but would not be responsible for payments that were not made during the months of my stay, they also told me my interest rate would not change due to the bk, and that there was no "penalty" for filing bk in terms of my accounts good standing

hope this helps