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Student Loans and Higher One Account

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    #1

    Student Loans and Higher One Account

    Hi all,

    I've filed my Ch 7, and I've just realized I may have missed something. I was getting student loans this last year (going to start paying them back next month) and my school loans are deposited on a Higher One Card. I just realized that this probably can be considered a bank account, and I need to give the statements to my lawyer. HOWEVER...I have been not so good about using my student loans for actual education related expenses. (One of the reasons I stopped going to school) This is reflected on my HO statement. Will the trustee see this and look at it as a red flag? I did use some of it for living expenses and other legit things, but not all of it. I'm just worried that this will cause my bankruptcy to be dismissed. But I also want to be up front about it, because I'm sure if the trustee finds out about the account and I didn't disclose it, that would be very bad for me. I'm not trying to pull one over anybody, I just want to make sure I navigate this the best way.

    Any advice?

    (I also did not plan on filing bankruptcy at the time I was getting/using my loans)
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    #2
    Welcome to BKforum!

    The trustee doesn't care whether you spent the student loan on education expenses unless the statements show you purchased assets that you did not list on your petition or made preferential payments to creditors or fraudulent transfers. If there is still cash in the account, your petition will need to be amended to include the asset. It's not a big deal as long as the amendment is filed instead of the trustee finding out himself and thinking you were intentionally hiding the account. Tell your attorney about the account. That is the best way to navigate any issue that comes up with your BK.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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      #3
      Hi LadyInTheRed,

      Thanks for your reply. My lawyer needed an extra month on one of my other bank statements so I have to take that anyway, and then I will bring the Higher One statements and explain the situation. What are "fraudulent transfers?" I don't think I did anything like that, just buying stuff. There are only a couple dollars left on the account.

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        #4
        My husband just put dinner on the table, so I don't have time to explain. Here's the bankruptcy code section that describes fraudulent transfers: http://www.law.cornell.edu/uscode/text/11/548
        LadyInTheRed is in the black!
        Filed Chap 13 April 2010. Discharged May 2015.
        $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

        Comment

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