Student Loan after filing Chapter 7

[nomoneyhoney]

We just filed for Chapter 7 last week and we included all our revolving debts and student loans in the schedule.
We have to pay out of pocket tuition fee and we included it as part of our monthly expense because my husband cannot get approved for any more student loans.
Anyway, we just found out that his school wanted him to pay full amount of $3,500. Prior to filing we were told that we would pay on monthly basis out of pocket. Now, they told us that the school needed all of the money and they have to issue us a student loan through them at 10% no interest until graduation. We don't have the money and my husband's classes starts today. So he had to sign the paper work or he won't be able to access his school account.
We are still going to pay them monthly to make sure we don't get charged with the interest rate.
However, we just realized this might cause problems since we just filed last week for Chapter 7 pro se.
How do we deal with this? We realized too late that this might cause problems.

Just to clarify, the student loan was approved because it was through the school not private or federal.
And my husband had to sign a promissory note that he would pay the amount monthly which was the same amount agreed before but they had to make us sign a loan for it.

Not sure if you can do this. This credit is not a luxury. My husband needs to attend school so he can graduate by Spring next year. They left us no choice by refusing to accept monthly payments and instead, want us to get a loan from them.

Please help.
Thank you in advance for your input.

[Pandora]

Student loans dont get discharged - they get put into forebearance, is my understanding.

ET: saw you filed pro-se... disregard attorney comment.

[biotechsolution]

The current dealings with the school shouldn't have any impact on your current chapter 7.

But you do realize that your prior students loans aren't dischargeable and you will have make payments after your chapter 7 is discharged for your revolving debt.

[nomoneyhoney]

Student Loans

Yes we know the student loans are not dischargeable. We intend on paying it after he graduates. His loans are not in forebearance or default since he's still attending school and will graduate next year. I'm just concerned about the new one since it's not included in our schedule. I was wondering if we have to notify the trustee about it or leave it as is.

Thank you for your help.

[kartoons19]

Not sure if this is the same, but I also filed last week and have already been approved for federal loans. I should be getting a disbursement next week. I asked my attorney if I needed to include this new loan in my paperwork and she said no. The only students loans included in my filing were the loans I took out prior to filing. Hope this helps.

[nomoneyhoney]

Kartoons19,
Thank you so much for your help. That makes more sense. I think I'm being paranoid about this since we filed pro se.
Your situation is pretty much the same as us. He has pending federal loan until the end of the year plus his small loan from his school to cover the balance that wasn't covered by federal/private student loan.

We did include all the student loans we took out prior to filing.

Again, thank you so much for your input. You helped me out so much!



We also filed Chapter 7 on July 24, 2010.
341 scheduled for August 24, 2010.

[tcreegan]

student loans, private or federal now same

Hi nomoneyhoney,

"...it was through the school not private or federal."

just to clarify, a loan from the school is private (unless federally backed of course)........

...but it makes no difference under the new BK law. Both federally backed and private student loans are not dischargeable. That is why the school forced you into a loan....you have to pay it back and can't get rid of it in the BK. They are just protecting themselves, good business sense....

Tom in Colo

[nomoneyhoney]

Hi Tom,
Well, it wouldn't have mattered because they weren't included in our list of creditors since we filed for Chapter 7 a week before the loan was created. It wouldn't have affected them in any way. I think we will be affected by it because in our application, we put the payments under Schedule J because we thought we would be paying monthly out of pocket but they changed their mind and turned it into a loan instead.
I hope this will not cause any problems for us.

[tcreegan]

Schedule J

Hi nomoneyhoney,

I seem to remember you saying the loan payment and out-of-pocket payments were about the same. You should not have to worry about it. Schedule J should be "forward looking" so including a payment you knew you were going to have is the right thing to do.

Good luck with everything!

Tom in Colo