Student Loan Issue

[UpsideDownMI]

How do you handle a new stafford loan that was applied for almost 3 months before filing and dispursed 10 days after filing? The dispursement went directly to the school. We did not list this loan on our schedules as we never received confirmation that the loan actually went thru until after filing.

The community college was very slow processing the loan and at the time of filing we were under the impression that we would have to pay for the tuition ourselves via a payment plan. I plan on bringing this matter up at our 341 hearing this week, but was wondering if anyone has any thoughts on this.

[lrprn]

How do you handle a new stafford loan that was applied for almost 3 months before filing and dispursed 10 days after filing?

The loan is not officially in place until the funds are disbursed. It couldn't have been included in your filing loans because it didn't exist yet. Does your lawyer know about this loan? Did you disclose on your forms that you applied for it?

I plan on bringing this matter up at our 341 hearing this week, but was wondering if anyone has any thoughts on this.

That is the absolutely WORST time to spring this on everyone, unless your lawyer already knows about it and advised you to do this.

However, if your lawyer doesn't know anything about this loan, then you need to talk with your lawyer immediately.

The loan payments will be deferred for the length of your Ch 13, so the payments aren't an issue. It's the loan itself and how applying for the loan before you filed and receiving the funds after you filed may impact your case. You need to find out where you stand with your plan regarding this loan from your own lawyer before your 341 happens. Get going!

[UpsideDownMI]

Thanks for the response. I do not have an attorney. After looking thru my plan and the paperwork, I think I should be ok. The disbursement amount is less than $1,000, which does not work require approval. Either way, I do feel this is definately a "grey" area. As I stated, it took almost 3 months for the disbursement to go thru.

[UpsideDownMI]

My only remaining question is should I amend my schedules to include the lender, as the master promisorry note was created in July at the time of application.

[lrprn]

My only remaining question is should I amend my schedules to include the lender, as the master promisorry note was created in July at the time of application.

First, sorry, UDMI - I didn't see your sig stating you filed your 13 pro se. Mea culpa.

The only persons here who *might* be able to help you figure this out are JustBroke who also filed a Chapter 13 pro se or one of our bk lawyer members.

The rest of us filed our 13s with lawyers, so aren't familiar with the specifics surrounding how to capture your particular unique student loan situation or whether you have to amend your forms.

Good luck. Hope your trustee is an easy-going one.