Timing of filing 7 and pell grant, going back to school

[Pjmax]

I am scheduled to file chapter 7, no asset, next week. I will ask my lawyer about this, but I am trying to plan this and not do anything stupid that can be avoided, so any advice will be appreciated.

Unemployment will run out either the first week of Sept. (most likely) or just may go until the end of the year. Unless a great job falls out of the sky, I will only have my soc. security bennies.

I can attend the local community college for almost free, with the over-60 tuition waiver and Pell Grant money for fees and books. I have only filled out the Fafsa online. I don't even want to spend the $35 app. fee and $20 credit transfer fee, if it will be for nothing. Registration date is Aug. 31. So this would all occur between filing, 341 meeting and likely before discharge.

Any thoughts on how I should handle this, are most appreciated.

[SMinGA2]

Receiving Pell for school expenses after filing ch. 7 should not impact your case.

One note: recently they changed Pell guidelines. Previously you could receive Pell for a maximum of 12 semesters, effective Fall '12 the maximum is 8 semesters. Not sure if this will matter to you or not.

[Pjmax]

Thanks for the reply. I believe the change is the lifetime Pell awards went from 18 semesters to 12, or 9 annual to 6 annual. Last time I took any classes was over 30 years ago. I probably had 2 or 3 annual.

Still concerned if there is an excess after fees and books, etc., that I might receive between filing and discharge. I wouldn't be too upset about handing over something (won't be much anyway) to the trustee. I just don't want it to delay the process up to discharge.

There's really not much info. on this, except for two chap. 13 cases that I found where the trustee took the extra, nothing on 7. I guess if it only matters up to the date of filing, I'll probably be OK, but I'm thinking maybe I should wait until I file next week before submitting the paperwork to school.

[Pjmax]

Talked to my lawyer this morning. He doesn't see any problem, shouldn't effect filing. So, I'm good to go. Thought I'd post this for anyone else interested.

[memama]

Pjmax,
I was in the tail-end of my degree when we filed for bankruptcy. I had two issues: I received a student loan disbursement right before I filed. This was sent to me after all tuition and fees were paid, so this was excess money from my student loan. My attorney said that it could not be exempted and recommended I purchase my next round of books (which I did) to whittle it down. It was really a non-issue since I was able to spend it, but I find it a little kooky that disbursements for school from a student loan cannot be exempted.
The second issue I had was that I had received an email regarding my FAFSA about 2 months after we filed. From what I gathered from responses, because I was in active bankruptcy it would have affected my ability to get further financial aid. This applies to student loans, though, not the Pell grant. I think I would have had to open new loans and sign a new promissory note, but that's it. Once again, this was right around the week during graduation or the week after, so it didn't really affect me.