I'm in trouble.

[jbrt]

My wife and I filed Ch7 back in May, our meeting of creditors was in July and we expect our discharge any day now, in fact, it's running late by my accounts. Our lawyer says all is fine last check (a week ago)

Ok, here's the problem. I think I messed up. I've been out of work now since June, and I've had it. So, back in late August, I decided that I'd be productive and go back to school. Honestly, I just wasn't thinking, but, I applied for financial aid and got a Federal Stafford Loan of about 4500 to pay for my classes this year. Those funds just got dispursed last week.

How much trouble am I in? I'm even suprised I got approved. But, I was just browsing some threads here and see where we're not allowed to inccur any debt while in active BK. I knew we weren't allowed CC, auto loans, etc..but, for some strange reason, at the time, I just figured that financial aidd was something different. But, now that I think about it, I'm in a state of panic!

Any thoughts?

[southernbelle]

You are not in any trouble from my stand point. Since student loans aren't dischargeable anyway you will still have to pay the loan back. You should inform your atty of the loan and the amount just in case. Due to the nature of the loan, it shouldn't affect you at all especially since you've already had your 341.

If you took out a personal loan for a new Mercedes, then you would have cause to worry.

[AngelinaCatHub]

If you have not spent the funds, for sure ask your lawyer for his thoughts, and you can always give it back immediately if a problem. It would be easily explainable to any Trustee as you have just done here. You don't have a problem. 'Hub

[aljohnson007]

Relax and let it ride through. Don't believe you did anything wrong.

[backtoschool]

You can get financial aid while in bankruptcy. Just be aware that any loan money that sits in your bank account before your 341 will be considered a cash asset and will have to be exempt. If the money is just sent to the school directly, or is disbursed after your 341, you will be fine.

[aljohnson007]

Thought it was the money in your account on date of filing. Am I thinking wrong?

[backtoschool]

Thought it was the money in your account on date of filing. Am I thinking wrong?

Sometimes in some districts, trustees will ask for your bank balance on the day of your 341.

[jbrt]

Oh, sorry, we had the 341 back in July. We expect our final judgment/discharge any day now.

Thanks for the replies.

[klandsb]

Funny isn't it but this entire bankruptcy thing has you second guessing /paranoid about every move you make or money that you spend

[adviceplease]

I just had a disbursement of $2000 that was left over from my student loan into my bank account. I used it to pay my lawyer and bills. My lawyer said it is not considered an income.

[outsidetool]

I got an auto loan right after filing with the understanding that was perfectly fine--was surrenduring a vehicle. Never caused a problem--so I don't see how a student loan would, either.

[music12]

Funny isn't it but this entire bankruptcy thing has you second guessing /paranoid about every move you make or money that you spend

yup! that's why i still hardly use my bank account. i think i'll get less paranoid when 6 months from filing had passed, but i might stay paranoid longer, who knows...

to the OP: i don't think you have any problems. don't worry about it. i don't think you even need to say something to your lawyer. what you are doing is part of your fresh start (going to school) and nobody can tell you otherwise.

so relax, and get some A's!

[jbrt]

Thank you everyone. This forum has been invaluable to us through this. From my wife and I, a heartfelt thank you to everyone here. Just searching and reading comments, questions, etc. has helped answer most our concerns.

and yes, got an A in two clases a B in one and since it's been over 20 years...I'm struggling with Algebra's high C grade..but, I'm not complaining.