student loan question

[Kdag]

Hi there...New to forum...filed chapter 13 in April 2014. Still not confirmed, but hoping soon. We have about 28k in student loans from our son. He has been paying the student loans for the last several years. It appears that in October he made a large payment directly with the loan servicer for 23K. The trustee hasnt said anything at all about it. Not sure when it would show up? The loans were listed on our schedule J. Any suggesstions on what to do or how big of an issue this is? We just want to get our plan confirmed. Any input is appreciated.

[dmc-2008]

It's in your bk but not, if you know what I mean. It's deferred. But there is nothing that says you can't make payments. However, if it is in your name and he paid such a huge sum it might raise eyebrows. Idk but good luck

[LadyInTheRed]

Hi there...New to forum...

Welcome!

Don't assume a student loan is automatically deferred. Some bkforum members have reported that theirs were. Others have said that theirs were not. Some had their monthly student loan payments included in their plans, others did not. The point is, what happens with your student loan during a Chap 13 varies. Your attorney can tell you how the loan is treated in the plan and your lender or loan servicer can tell you whether it is automatically deferred during your Chap 13 or whether you have to apply for a deferment.

We have about 28k in student loans from our son.

I'm not sure what you mean by this. Are these your son's student loans, or ones that you took on his behalf? If he is a borrower and is responsible to pay the loan, I don't think him making a large payment is an issue, even if you are a co-borrower/guarantor. But, you should ask your attorney to be sure.

[Kdag]

Thanks for responding. This process has been so tough! My husband and I took out the student loans in our name, and he has been faithfully paying on them since he graduated. The loan servicer told him that he could continue to pay on them while we were in chapter 13, and that they had been deferred. They show a zero balance on our trw? My concern is whether the trustee can see that large payment made by our son, and if it will cause any problems or delays. WE can prove that we did not make the payment. We just want to get our plan confirmed!!!

[LadyInTheRed]

I doubt your trustee will notice and don't know if there would be any negative consequences if he did. Let your attorney know about it. What's done is done, but you don't want your attorney surprised if it does come up.