Few Chapter 13 Questions please help

[PinkTinker78]

Looking to file very soon, meeting with Attorney to start paperwork this Thursday and I have a few questions.

1. Can I let my creditors know that I'm filing chapter 13 before it's actually filed. I am making a small payment to my attorney this week but I have to pay at least $575 before he will even file and I still have to take the class which is another $35. I am worried that before I file that some of the creditors will try to seek judgement which can lead them to be secured creditors.

2. Will my financial aid be affected by filing chapter 13. I'm going to be starting my last year for my masters and I have to get financial aid.

3. I'm worried about my bank accounts because i've read some stories about accounts being frozen. I work at the bank that my direct deposit goes into and I also have a charged off account with the bank from awhile ago that I have to list in my chapter 13. I'm afraid once they get the notice that they will freeze my account. I don't keep high balances but the only way to get my pay is through direct deposit with the bank only.

4. Second if all of the creditors don't file a claim will the set payment amount decrease or does that mean more for other creditors. I have several online payday loans that aren't even legal in my state and I'm assuming they will not file a claim.

[optimistic1]

1. Yes you can tell them, depending on how long you have been delinquent on your accounts and how much longer before you file will determine if they can sue and win, and garnish or collect, the act of them getting a judgement does not change their "secured or unsecured" status. When your creditors call, give them the name and phone number of your attorney, only if he approves of it. Your creditors will not bother suing you if you intend to file and have already retained an attorney.

2. The answer to this question is a complex one because several issues are involved. It depends on the nature of the student loan programs (federal or private) and the type of bankruptcy.

Whatever the circumstances behind the bankruptcy, the student should talk with the financial aid administrator at the school he plans to attend, and explain the situation. The financial aid administrator may be able to guide the student to certain loan programs or lenders that may fit his needs.

Generally speaking, a bankruptcy should have no impact on eligibility for federal student aid. The main issue is getting the trustee to allow this activity while you are in a Chapter 13, im sure he has a policy regarding this issue, I bet it's not the first time this has come up.


3. Im surprised that your bank never tried to take money from your accounts to satisfy the defaulted account, it sounds like they do not have cross collateralization clauses, or they are a small bank. Every bank has a policy regarding a filing of a bk, most will NOT freeze your accounts, they want your business.

4. If your plan is a 100% payback plan, and the creditors dont file claims, then your amount of time to complete your plan is reduced. Otherwise, if they dont file a claim, then your other creditors get a bigger piece of the pie.