2nd Meeting with Lawyer

[Reddrocket07]

I had my second meeting with my lawyer today to file Chp 13. She estimated that our monthly payment would be $416. Im sure the trustee will ask for more. I was wondering what the frequency has been for proposals being approved. Has anyone ever paid a drastic amount more than what the lawyer proposed? We meet in mid-Nov. to finalize and start our payments.

Also, has anyone ever converted to a Chp.7 after they started a Chp.13? My wife might lose her job, so we would be even more screwed than we were before starting BK.

Last question: Has anyone had success discharging a private loan for school? I got a private loan through chase bank. It has been consolidated, but the company says even though its a private loan, its a student loan. In addition, the company claims that my lawyer forwarded the company back to me instead of going through the BK. My lawyer told me she, nor any of her staff would forward a creditor, student loan, etc. back to a debtor. So I tend to believe my lawyer over the company.

[JRScott]

Many folks convert from a Chapter 13 to a Chapter 7. In fact a majority of folks do sadly, so yes that is possible.

When Chase calls back tell them your lawyer has informed you to refer them to her and that she indicated that neither herself nor any member of her staff has told them to contact you in direct violation of the stay.

[b_girl]

As for student loans, they are rarely discharged except in cases where it poses a hardship, and I understand it takes some really extreme circumstances to qualify as a hardship.

[Reddrocket07]

Yes, my lawyer told me the loan will be about the wording of the loan. The loan is listed as a private loan by the creditor and I was not able to defer this loan at all when I deferred my student loans. In fact, I consolidated my student loans back with the federal government to take advantage of the public service payment credit. The fed government told me this loan from chase was not a student loan, but a private loan.

[BKParalegal]

Here is the current legislative language, as amended by Section 220 of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), P.L. 109-8, effective October 17, 2005:

523(a) Exceptions to discharge

(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for -

A. an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or an obligation to repay funds received as an educational benefit, scholarship, or stipend;
or

B. any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;

Paragraph B pertains to your loan. In short, it is not dischargeable. Since 2005, I have seen 1 case where student loans were discharged in BK and that was only after we proved that the client was diagnosed with split-personalities.

Good Luck

[IDKwhat2do]

Has anyone ever paid a drastic amount more than what the lawyer proposed?

Yes.

My attorney made a huge math error on the 22C, (mis-stated projected payment by $2K, so administrative costs were overstated by about $300) and we proposed $325/month based on that calculation.

I know now I should have done my own math, and I did, but I had also treated my 401K contributions as being excluded from disposable income. My attorney didn't include my 401K contributions on 22c.

Of course, Trustee objected, and I am paying $673/month. Don't know how long I can do that.