Here's my situation--
1) I have a house problem (severe underwater, etc.) and some unsecured debt and I want to file a chapter 7 bk. I have hired an attorney.
2) I am scheduled to complete my 2 yr. grad program in 5/2010. I am scheduled to receive my financial aid disbursement and refund containing BOTH Stafford and GradPlus on approximately 1/20/2010. I use direct deposit.
3) My refund will provide much more than 10K of cash in my bank account (which I can wildcard). With this refund, I will have approx. 20K of cash in my bank account. As a result, my attorney wants to file b/f the money hits my bank account.
I cannot risk not getting the disbursement or money that I need to pay tuition and for living expenses.
I am worried that I file Chapter 7 b/f my disbursement date, I will not get my disbursement (since I have read on here that disbursements stop during bk). I'm particularly concerned about the GRADPLUS since it involves a credit check and I will not be approved if I have to reapply (last year, the money was secured for disbursement, but my credit currently disqualifies me).
However, is there a lag time between filing for chapt. 7 and the notification to the lender/bank? Meaning, can I file a week or so b/f the expected disbursement and be okay? OR can I cancel my direct deposit, have the refund check mailed to me, and file on the day the check is expected to get cut. That way, I don't have the money in my bank account yet nor in my possession when I file but I will still get my check and can deposit after I file?
I hope that this is clear. Your help is greatly appreciated. Thank You!
1) I have a house problem (severe underwater, etc.) and some unsecured debt and I want to file a chapter 7 bk. I have hired an attorney.
2) I am scheduled to complete my 2 yr. grad program in 5/2010. I am scheduled to receive my financial aid disbursement and refund containing BOTH Stafford and GradPlus on approximately 1/20/2010. I use direct deposit.
3) My refund will provide much more than 10K of cash in my bank account (which I can wildcard). With this refund, I will have approx. 20K of cash in my bank account. As a result, my attorney wants to file b/f the money hits my bank account.
I cannot risk not getting the disbursement or money that I need to pay tuition and for living expenses.
I am worried that I file Chapter 7 b/f my disbursement date, I will not get my disbursement (since I have read on here that disbursements stop during bk). I'm particularly concerned about the GRADPLUS since it involves a credit check and I will not be approved if I have to reapply (last year, the money was secured for disbursement, but my credit currently disqualifies me).
However, is there a lag time between filing for chapt. 7 and the notification to the lender/bank? Meaning, can I file a week or so b/f the expected disbursement and be okay? OR can I cancel my direct deposit, have the refund check mailed to me, and file on the day the check is expected to get cut. That way, I don't have the money in my bank account yet nor in my possession when I file but I will still get my check and can deposit after I file?
I hope that this is clear. Your help is greatly appreciated. Thank You!
Comment