Student loan question

[newday]

I have a seperate checking account that I rarely look into because it's all automated to pay my student loan payments. ($100 a month gets directly deposited from my paycheck, and $100 a month gets directly withdrawn for my student loan, nothing else is added or taken from this account) I figured my student loan is not dischargable and I wanted to pay it off anyway as it's almost all gone, but I happened to check the account recently and saw the last payment was withdrawn 10/28 and I filed 10/14. I listed the loan on my creditors list, as I was supposed to list ALL creditors, but with the understanding that it wouldn't be dishcharged. I'm wondering why the they stopped automatically taking the payments? Anyone have any idea? I also included this expense on my expense list and it would definately change my status to have an extra $100 per month right?

[StaciMM]

The automatic stay applies to your student loans-meaning they can't bill you during the BK process. You can voluntarily make your payment, they just can't ask for it. Most likely, they didn't receive the info in time to stop the Oct 28 payment.

[HRx]

Several members who've filed Chp7, and listed thier student loans thier petition, actually had them discharged! You may as well give it a shot, and see what happens.

[bilbo]

Can student loans be listed as an expense on schelude J? Newday, are you a pro se or do you have an attorney? I have been looking for information about whether student loans can be listed on Schedule J since they USUALLY are not dischargeable. Anyone know about this?

[StaciMM]

You do want to list them as an expense-schedule J needs to show what you have to pay each month. You should not list things like credit cards, medical bills, etc. as you wouldn't be paying those after the BK.

[bilbo]

Wow. I did list them. Can you tell I am freaking out about my 341 Friday? I read in a few places on the net that student loans could not be listed on Schedule J for a Chapter 7. Other places I read that you can list Taxes and Student loan cause they most likely will be continued expenses. And that recent 'dismissed' thread was making me worry--although I have been nothing BUt honest on my schedules.Uh, and I WAS making my payments until I filed.
I am so worried I will be forced into a 13. I can pay my living expenses, car payment, and student loan payment but have nothing left after that.
Funny how trustees can anticipate an increase in income but they don't allow for any anticipation of increased expenses. Such as child support being stopped after July 2006 and another dependent due in March.........

[bkfiler]

you know i forgot to list my student loan as a monthly expense? is that what we are supposed to do?

i listed tax payments though. i was way under my income by hundreds of dollars so it doesnt matter, yet.

(it aint over till the US Trustee doesn't say its over and thats on the 59th day! lol)

[bilbo]

I don't know. I have been getting conflicting information. On one hand I have read that Taxes and Student loans can be listed because they are not going away. lol On the other hand I have been told that listing student loans is showing preferential treatment to a creditor. If I cannot use my student loans payment(lots of debt, high payment) it will screw me for the 7.....

Has anyone here listed their student loans on Schedule J for a Chapter 7 and gotten their discharge?

[bkfiler]

it may not specifcally apply here but wanted to add this anyways:

preferential treatment is when you pay a creditor more then $600 in the past 60 days or something like that. listing something will not cause it to be preferential.

taxes less then 3 years from the date you filed or should have filed cannopt be discharged without fighting like hell with a motion to the court. and i will bet money that you wont win. i could make a lot of money this way

same goes with student loans. a hardship motin must be brought before the court and you wont get it, i bet, if you can work at all for example.

[bilbo]

I don't want to get my Student loans discharged--just everything ELSE!!!
But I don't want to get shoved into a 5year Chapter 13 either. I need to move back to Texas in the fall and if I have to pay Chapter 13 payments there will be no money to move--and more trouble finding a place to live too....

[StaciMM]

Preferential treatment really only comes into play if you were paying one creditor while not paying another creditor of the same type. Its generally not a problem with priority debts-such as secured items, IRS, student loans, etc.

If you have a mortgage and/or car, and you were current on them at the time of filing, then you paid more than $600 in the 90 days before filing. I've never heard of the BK court taking that money back. On the other hand, if you have 6 credit cards and one was being more demanding than others so you paid Chase $1500 in the course of 3 months, and then gave up because the other 5 came after you and you had nothing left... Well the trustee will make Chase give that back, keep a part for the trustee, and then distribute it so the unsecured creditors each get some.

[bilbo]

The ONLY things I was current on was my car and my student loans(well and rent lol) I did just find this web site with this following information so I am feeling a bit better now.....Of course this is geared towards the means test--so hopefully it flies for me to list my student loans under the old law-ARGGGG! I wish I could stop freaking out!!!! LOL

http://www.callyourlawyers.com/BankruptcyAbusePrevention.html

average monthly payments on priority claims (e.g., child support,
student loans, alimony, etc.);

[jennga]

I listed my Student Loans on my schedule J. My lawyer also had me list it as a debt because it is one but assured me it would not be discharged. I never thought about it until now but it was listed on both. My lawyer is strictly a BK attorney so I didn't question anything, plus hadn't found this forum yet haha.

ANyway, I do have my discharge papers, I just figured I would wait until I got another payment book on my student loans. They had stopped billing me and I was also told that it was because they had to abide by the automatic stay but would begin billing after the discharge.

[bilbo]

Cool. Thanks for the answer. I'll try to chill out now...... lol

[Bronte]

I also listed my student loans under the expense schedule per my lawyers instruction. My lawyer told me that is almost impossible for your student loans to be discharged under bk.

Last week I ran a credit report to check my account status and was suprised to see my student loan listed as deferred status. I call Sallie Mae and was told that because I filed for BK they had to mark it as deferred until I received the discharge. I have been making payments to them per my lawyers advice and they are keeping the funds on hold until I receive the discharge.