Home from my 341.....Eh

[TeacherMomma]

I don't think I follow? I know what you mean, I think-by buy out-but what am I buying out from? I would be paying the SLs outside of the $0 plan......that leaves me no money to save up.....
Confused.

[justbroke]

jadams is just having fun and saying that you should "buy out" (via early payof) your $0.00 plan... by paying what you would throughout the plan... $0.00. (However, my research shows me that's it's not the payoff amount that's the issue, it's getting the Court and Trustee to allow you to change your commitment period, that's the real problem.)

[biotechsolution]

Ok, craziness! Listen to this: I just got a call on my cell from the US Trustee's attorney that was there today (the one that pulled us aside and talked to us) and he said that we ARE eligible for Ch 13 because there is a "special plan classification for student loans". Whatever that means. I will research and see. But he said he has a call in to the counsel that handles Ch 13 in his office and will call me back.
It ain't a 7 which stinks, but it isn't a dismissal or an 11 either! We'll see.

What he is most likely planning on is your student loans being put on hold during the Chapter 13. Which is normally the status of them anyway during a 13. He's planning on your student loan payments going to the creditors during the plan. Since they are put on hold during a bankruptcy you can't use them for expenses during the plan.

[liz417]

Okay, I've been pretty laid back about my pending 341 next Monday....but now I think I've got some concerns....Yikes! While I was interviewing attorneys, I did ask each one what the Riverside/S.B Trustees were like and all the attorneys said they were fine....except one....I guess you got that "one"...
I'll let you guys know how my 341 goes next week, I'm over the median, high SL debt and trying for a ch 7 :/

[music12]

if i am understanding things right, it seems that the trustee is really trying to help teacher. so, bless him! even if the law doesn't allow it, if the trustee wants to do it why challenge him?

it happens so often that a strict interpretation of the law results in grave injustice; why not let the trustee stretch the law a bit so that justice will result? nobody is really going to get hurt.

[liz417]

if i am understanding things right, it seems that the trustee is really trying to help teacher. so, bless him! even if the law doesn't allow it, if the trustee wants to do it why challenge him? .

It sounds like the UST is the one being nice and helping the OP. But from what I've heard, there is ONE Riverside Trustee that is a "stickler"....

[eddiep]

Wow I am so impressed, you handeled yourself like a pro! Great job I hope it works out for you.

[aces67]

You handled it all very well at least! I hope the UST can work something out for you!

[TeacherMomma]

I see what you mean about the SLs being put on hold - that does makes sense. But then after the 13 aren't I stacked high with penalties from the "suspended" status of my SLs or are penalties not allowed during this time? Also, some of my loans are in a program for school employees whereby I pay them for 10 years in income contingent and the remainder gets discharged as long as I remain a school employee/public, and some other requirements - I cannot NOT pay that or my 10 years starts over. I pay it now through the BK process just to keep it going.

When I am speaking of TT I mean the guy who ran my 341, and when I speak of the UST I mean the big guy who oversees it all.....is there another way to differentiate between them on this board?

Liz, I dont know if my TT is the stickler. He seemed nice enough if you had your stuff together. PM me if you want to know his name - the things my TT was being mean to the attys about seemed like ridiculous things for the attys to have missed/their staff to have missed (dates, signatures, missing forms, miscalculated schedules, clients who clearly didn't live in CA the two years prior or something like that, exemptions not claimed) One lady's atty did not even show, poor thing. He WAS laid back with the pro se'ers. And any frustration was clearly directed AT the attys, not the filers.

[TeacherMomma]

I forgot to add to my original post one question at the end of my 341 that the TT asked me. Right before he gave the licenses back he said:
"So you have a high level of SL debt here......" and I said "Yes, it's mine" and he said "And you are a XXXX, is that like a XXXX in a School, or a XXXXX in a School?" and I said "Yes" in an exhausted tone sort of to admit my stupidity, and he said "Well ok then" and smiled. Sort of like to say "all that school and you just now figured out education was not the smart career path to pay all this back?!!!" LOL

I put XXXs cause it gives a little too much info about my actual job, and it is rare....so sorry! I just thought posting this might help someone reading who is in my shoes!

[biotechsolution]

I see what you mean about the SLs being put on hold - that does makes sense. But then after the 13 aren't I stacked high with penalties from the "suspended" status of my SLs or are penalties not allowed during this time? Also, some of my loans are in a program for school employees whereby I pay them for 10 years in income contingent and the remainder gets discharged as long as I remain a school employee/public, and some other requirements - I cannot NOT pay that or my 10 years starts over. I pay it now through the BK process just to keep it going.

When I am speaking of TT I mean the guy who ran my 341, and when I speak of the UST I mean the big guy who oversees it all.....is there another way to differentiate between them on this board?

Liz, I dont know if my TT is the stickler. He seemed nice enough if you had your stuff together. PM me if you want to know his name - the things my TT was being mean to the attys about seemed like ridiculous things for the attys to have missed/their staff to have missed (dates, signatures, missing forms, miscalculated schedules, clients who clearly didn't live in CA the two years prior or something like that, exemptions not claimed) One lady's atty did not even show, poor thing. He WAS laid back with the pro se'ers. And any frustration was clearly directed AT the attys, not the filers.

yes..that is the catch 22 of student loans during a chapter 13. the loans are put on hold but the interest can build up during the chapter 13. Most people will still try to make payments during their chapter 13.
You can't claim the actual payments on your schedule for expenses but you should try to pad your expenses so that you can manage to pay something on them.

[TeacherMomma]

Yeah, that wont work for us, as the payments are over 3K on the SLs. I mean I guess we could pay just the interest while in the 13, but I don't know.....a lot of the 3K is interest anyways!

[jadams]

Any updates on the Motion to Dismiss?

[TeacherMomma]

The UST filed one. I'm going to fight it. Supposed to have court for it 8/26, but asked for one more month, so court end of Sept for it.