AP for 220K in Private Student Loans

[MSbklawyer]

Keep in mind that there is another way of getting temporary relief from student loan debt short of discharge: Chapter 13. I have several clients who are in very low payment chapter 13s precisely to stave off garnishments by student loan creditors. The debt will still be there when they emerge from Chapter 13 five years later, but for five years they don't have to make substantial payments on the loans. When their current chapter 13 ends, they can file another one if need be.

I have one client who, when his chapter 13 ended, he continued sending the exact same amount to the Dept. of Ed. that the trustee had been sending -- something like $23.72 per month. We are two years out from his chapter 13 closing and they have apparently not yet realized that they could start pursuing him again and keeps accepting the $23.72 per month, and they are leaving him alone. They've been lulled to sleep by the continued receipt of payment and, under the heading of Letting Sleeping Dogs Lie -- we ain't sayin' nothin'.

[backtoschool]

Keep in mind that there is another way of getting temporary relief from student loan debt short of discharge: Chapter 13. I have several clients who are in very low payment chapter 13s precisely to stave off garnishments by student loan creditors. The debt will still be there when they emerge from Chapter 13 five years later, but for five years they don't have to make substantial payments on the loans. When their current chapter 13 ends, they can file another one if need be.

I have one client who, when his chapter 13 ended, he continued sending the exact same amount to the Dept. of Ed. that the trustee had been sending -- something like $23.72 per month. We are two years out from his chapter 13 closing and they have apparently not yet realized that they could start pursuing him again and keeps accepting the $23.72 per month, and they are leaving him alone. They've been lulled to sleep by the continued receipt of payment and, under the heading of Letting Sleeping Dogs Lie -- we ain't sayin' nothin'.

This would be a good interim solution for those that have private loans and income's that are too high for garnishment to be feasible. You would also need to have a lot of expenses in order to not have a huge chap 13 payment. I don't know if I would want to be in a chap 13 indefinitely though. There are definite downsides to that.