Chap 13- student loans/taking refund
SO MAD!!!! My bankruptcy was discharged 3 years ago. I paid a monthly amount to a trustee and it was paid off. All of my college loans were included. I have 1 college loan that is now saying I owe more than what I paid. How is this legal and after all this time? How can they come after me years later and say I owe more. Also, they took my federal refund!! How are they allowed to do this!? I have a lawyer fighting it, but would appreciate any input.
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Maybe there was simply an error in the calculations. It seems to me that you are doing the only thing you can do which is have an attorney fight it.So the poor debtor, seeing naught around him
Yet feels the narrow limits that impound him
Grieves at his debt and studies to evade it
And finds at last he might as well have paid it. -
A lot of times the chapter 13 plan will state they pay 100% of the claim. However, the interest on the student loan continues to accrue during the bankruptcy. Most, if not all, trustees do not account for that accruing interest.
The student loan company files a Proof of Claim for the balance of your loan the date you filed bankruptcy. So the Trustee starts to pay on that debt which lets say is $1,000.00 on the date you filed. The trustee makes payments that equal $1,000.00 over the life of your chapter 13 plan. That $1,000.00 does not actually pay off your balance, because of the interest that accrued during your bankruptcy.Comment
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