Can I stop paying on private student loans during bankruptcy?

[kellysmum]

I have to pay about $260 per month to Sallie Mae for private education loans which are non-dischargeable. My mother co-signed on all these loans. During the bankruptcy period, do I have to go on paying these monthly payments or is there a "stay" of some kind?

[HHM]

I wouldn't recommend it. If you stop paying, you go in default, and Sallie Mae goes after mom. If you can, try to keep the payments current to avoid going into default.

There is a "stay", but the stay only protects you from them "requesting or demanding" that you pay. But the stay doesn't protect you from the natural consequences of not paying and the stay does not help mom in anyway.

Side note, your question is pretty much the same question you asked here, http://www.bkforum.com/showthread.ph...are-bankruptcy

Please don't duplicate questions, thank you.

[heartheart]

Mine actually stopped accepting my payments entirely.

[EandGWZ]

Mine actually stopped accepting my payments entirely.

Interesting, how exactly did they do that?

[heartheart]

Interesting, how exactly did they do that?

I got a notice that my loans were currently in deferment and that they would not be accepting any payments for this period. I didn't complain! Interestingly enough, they're also still in good standing on my credit report (I had never missed a payment prior to the bk filing).

[ksgirl38]

I got a notice that my loans were currently in deferment and that they would not be accepting any payments for this period. I didn't complain! Interestingly enough, they're also still in good standing on my credit report (I had never missed a payment prior to the bk filing).

If it's from Sallie Mae I'd be careful with that information. I had them tell me that my account was in deferment and then the next day tell me it wasn't. It's usually wise to keep paying your expected payment just to avoid any issues later.

[pamkev]

Our lawyer told us to keep paying our student loans which we did. We did not hear a peep from them until after discharged when we got a statement showing all our payments that we sent in were applied to the loan.

[HHM]

Servicer's handle this issue differently. Some do send payments back and put your loan in deferment. In those cases, you need to be on the ball (save the money sent back) and as soon as your case is discharged, get back in touch with the servicer and start making payments. Others operate as business as usual. Others will hold onto the payments, place them in a suspense account (i.e. not apply the payments) until the BK is discharged. In any of these scenarios you want to watch out for illicit late fees.

Best advice, is to make payments. If the payments get returned, then wait until discharge and start making payments then.