Student Loan Question (servicer vs. guarantor)

[schism7273]

I filed February 26th. I had my 341 on April 1st, everything went fine and the Trustee asked no questions.

My credit report showed two ACS student loans and they were sent the proper paperwork. I called them today and confirmed that. However, last week I got a call from NY State Education saying they should have been notified.

My lawyer says ACS has been notified and we are fine. I called ACS and they said when I went into bankruptcy I needed to deal with the Guarantor of the loan (NY State Education) but no one notified me of that, nor are they listed on my credit report. I didn't even know they existed. I've only ever seen ACS on my paperwork statements.

I am so confused. What am I supposed to do now?

[lrprn]

My lawyer says ACS has been notified and we are fine.

If your lawyer says you're fine, then you are.

I called ACS....

When you are represented by a bk lawyer, you should NEVER contact one of your creditors after filing unless your lawyer gives the ok.

I am so confused. What am I supposed to do now?

Your lawyer already told you what to do.....do nothing because he/she says you are fine. The problem here is that apparently you don't believe what your lawyer told you. The question is why do you doubt what you were told?

Have another conversation with your lawyer. Confess that you called the creditor and what you were told. Follow the advice you are given because that's what you are paying your lawyer for - expert legal advice.

[Flamingo]

lrprn is correct. When you retain and are represented by a lawyer, you do not talk to or contact your creditors as soon as you sign the retention letter/agreement. Bring your conversation to the attention of your attorney to ease your mind and to ensure all is OK.

[HHM]

What is the problem, exactly?

You do realize that the student loans will not be discharged, however there are 2 reasons you still notify student loan servicers etc.
1. You are required to disclose all debt regardless of its status
2. It prevents the student loan servicer from taking adverse action (like garnishing wages or intercepting tax refunds) while the BK is pending

However, once the BK is discharged, YOU need to get back in touch with the student loan people and restart payments or make some arrangement.

[schism7273]

What is the problem, exactly?

Wow. I never thought my question would be received so negatively. I thought this was a place to come and ask questions, apparently not (without being jumped on?).

My problem is this...
1) I have never been through bankruptcy before.
2) I don't assume anyone ever has my best interests in mind, even when paying them
3) I've read on here how many people find out later their lawyer was no good when they felt differently up until they screwed something up (so why am I being jumped on for asking and trying to double check something I don't understand in a forum built just for that?)
4) My emails are answered by the paralegal (sorry to say Lawyer above), not the lawyer, he is hard to get a hold of so my logic was, before I push back for more information other than "You are fine" I thought I would see if anyone here had experience with the "servicer vs. guarantor" setup.

This is unlike a credit card creditor and I am only trying to understand the legal obligations to notify them.

I also understand I need to pay it after the plan is up. I am not trying to get out of it. I'm only trying to make sure they can't take action in the meantime because the rules were not followed in a case that I am responsible for. Just because I hired a lawyer it doesn't excuse me from being involved and clarifying things I don't understand.

I am in touch with my lawyer, I have asked about it again and am waiting for an answer. I was hoping to find guidance and support here as well but I guess not.

[NoTomatoCan]

Schism - BK is tough on everyone, especially when you are first going through the process.

Having read the responses you received, they didn't seem particularly harsh or negative. Direct and to the point, maybe, but it is essential that the information HHM, Flamingo, and LRPRN convey is clear so that there is no misunderstanding or confusing what they are trying to say. I have found that most of the B/F Gurus typically state the facts clearly so that someone else who may be in a similar situation as yourself can read the post and follow it.

With $140k of student loans between me and my wife (some consolidated and some not), I definitely know how confusing the whole servicer vs. guarantor thing is.

Hang in there. This is definitely a forum where you will get support and guidance.

[HHM]

The "what exactly is the problem" comment was not meant in a mean way....but it is not clear what your concern is or even the question?

What are you worried about with your student loans?

Often times, when a person declares BK, the servicer (if its a true 3rd party servicer) will return the loans to the guarantor. However, that does not really matter except that you will want to know who that it is so you can contact the guarantor after the BK (or during to at least make interest payments if you can).

[indebt00]

Your not going to get anywhere with the NY State Educ or the The Dept of Education....ugh or Sallie Mae...

we have been down this route....we just pay our student loan payment each month as our lawyer told us to do...we are trying to get it outside the bk.

I have not been able to get any info on who has my loan or where my payments are going...its so convoluded. so....

I just pay and if trustee or lawyer says stop I will stop.