Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Student Loan Law Firm threatening me

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Student Loan Law Firm threatening me

    I have a student loan that went to collections while I was planning my BK. I am filing a chapter 7 and had to use the student loan payment money to pay for the attorney. In the meantime, they sent the student loan to an attorney for collection.

    The attorney just called me and when I said it was filed, she stated that after it is all discharged, they will be pursuing legal action. I asked if we would be able to set up a payment plan and she said no. So what does one do with student loans turned over to an attorney once they are discharged?

    There is no way that I can come up with the 30 grand. I'm freaking out.

    Thanks.

  • #2
    Well when it comes to student loans and garnishments the most they can do is 15% unlike 25% with other debts. The bk will freeze any action till discharge. Use that time to save up some cash and try to work out a deal beforehand.
    3/2/09- Filed: chapter 7 / No asset
    4/1/09- 341 Hearing: 1 creditor showed up Got to love family feuds
    4/2/09- Trustee Report of No Distribution Filed
    6/24/09- Discharged and case closed

    Comment


    • #3
      Thanks for the input.

      Well the plus side is 15% of my income is basically nothing... so that wont do too much. However, I'm sure they will add plenty of fees and such to keep that debt growing.

      So if they garnish my wages that means that others will know I filed... awkward

      Comment


      • #4
        Originally posted by Imscrewed View Post
        Thanks for the input.

        Well the plus side is 15% of my income is basically nothing... so that wont do too much. However, I'm sure they will add plenty of fees and such to keep that debt growing.

        So if they garnish my wages that means that others will know I filed... awkward
        The amount of garnishment depends on your location. In my state, they can garnish 25%.

        I'm not sure what you mean by this bolded statement. Garnishment has nothing to do with bk. Having a garnishment does not mean one has filed for bk. It simply means the collector has taken further legal action to proceed with the garnishment. So just because you have a garnishment does not mean everyone is going to know you filed.
        I may be smarter than an attorney, but I'm not one. No legal advice here, people.
        Filed Ch. 7 pro se on 10/22/10 341 on 11/19/10 Report of No Distribution Filed on 11/19/10 Discharged 1/19/11 Closed 2/2/11

        Comment


        • #5
          I'll have to look it up but student loans have a federal cap of 15% of disposable income, which since no one fights it always ends up being 15% of net. Other loans can do 25% assuming state allows it.
          3/2/09- Filed: chapter 7 / No asset
          4/1/09- 341 Hearing: 1 creditor showed up Got to love family feuds
          4/2/09- Trustee Report of No Distribution Filed
          6/24/09- Discharged and case closed

          Comment


          • #6
            Originally posted by Imscrewed View Post
            Thanks for the input.

            Well the plus side is 15% of my income is basically nothing... so that wont do too much. However, I'm sure they will add plenty of fees and such to keep that debt growing.

            So if they garnish my wages that means that others will know I filed... awkward
            I think your federal tax refund will get taken, too. Might not be much, depending on your income, but they will take it forever, until the loan is paid. Be careful and smart about your witholdings at your job, so you take home as much pay as possible!
            Filed Ch 7 Pro Se 11-18-2010 341 Meeting 12-16-2010 Discharged 2-15-2011
            New Job 7-2011

            Comment


            • #7
              The question that no one has asked, but that everyone SHOULD have asked, is whether this student loan is federal or private.

              If this is a private student loan, that 15 percent rule doesn't apply. Throw it out the window. This will be just like any other debt. The OP will be sued, the lender will get a judgment, and the state's garnishment and collection laws will apply.

              If this is a federal loan, no need even get a judgement! The lender can exact an administrative garnishment of 15 percent of the OP's income.

              Perhaps if the OP can tell us a bit more about the loan, we can be of more assistance.

              Comment


              • #8
                Don't mean to freak you out but your student loan will not be discharged unless you have an undue or foreseeable hardship (and you have to file an AP when your bk is active). After your case is discharged and close, they will come after you for payments. If your wage is being garnished, I think the most they can get is 25% of your disposable income (that's what in most states). Just try to work it out with them.
                Filed chapter 7 Jul 13, 2010 341 hearing Aug 12, 2010 Trustee's report of no distribution Aug 20, 2010 Discharged Oct 13, 2010 Closed Oct 28, 2010.

                Comment


                • #9
                  Thanks everyone. So I have 2 student loans. One is Sallie Mae, and the second is American Education Services. The AES loan is the one that has been turned over to an attorney. I am guessing it is a federal loan. I will go through my papers to find out for sure. I am going to try to explain to the law firm, that if they would work out a payment plan, it would end up being much more than if they garnish my wages/returns. I want to pay them off.

                  So here is the part that kinda has me pissed off. Why would my attorney tell me to stop paying my student loans? Especially, if me getting sued my the loan companies was inevitable. Such a nightmare. So basically, I am going to go through a bankruptcy, but instead of getting my credit slate wiped clean I will end up with judgments against me... so not cool.

                  Comment


                  • #10
                    Originally posted by Imscrewed View Post
                    Thanks everyone. So I have 2 student loans. One is Sallie Mae, and the second is American Education Services. The AES loan is the one that has been turned over to an attorney. I am guessing it is a federal loan. I will go through my papers to find out for sure. I am going to try to explain to the law firm, that if they would work out a payment plan, it would end up being much more than if they garnish my wages/returns. I want to pay them off.

                    So here is the part that kinda has me pissed off. Why would my attorney tell me to stop paying my student loans? Especially, if me getting sued my the loan companies was inevitable. Such a nightmare. So basically, I am going to go through a bankruptcy, but instead of getting my credit slate wiped clean I will end up with judgments against me... so not cool.
                    Please do your best to find out whether this is a federal loan or private.

                    If this is federal you have lots of options. You can rehabilitate federal loans that are in default many times. That means that you make a few payments and you're back in a normal repayment schedule.

                    Federal loans don't normally default during bankruptcy which makes me think this is a private loan. Your attorney probably thought that all of your loans would go into forbearance while in bankruptcy. Federal loans almost always do. Private loans depend on the lender.

                    Try to tell us more about the loan so we can help. I know it's a hassle to dig out the paperwork but even the name of the loan might let me know whether it's federal or private.

                    Comment


                    • #11
                      Government v. private makes all the difference in the world. Hey KeithDoxen - has Access Group come after you yet? They just sent me an invoice informing me that my monthly payments are now almost double what they were pre-BK and the first is due 12/25/10. Two days AFTER they sent me a letter stating that my BK forbearance ended July 2011. There goes my brand new clean slate...

                      Comment


                      • #12
                        Have they come after me? It depends on how you look at it.

                        Have they called at all hours of the day, sent my account to two different collection agencies, and generally been annoying? Absolutely.

                        Have they filed suit? Nope.

                        Since they decided to let my loans go into default during bankruptcy, instead of granting me a bankruptcy forbearance, I didn't get any kind of payment schedule. I got a bill for the whole six figures. After I was done laughing, I decided to educate myself on what they could do to me. The answer is: not a heckuva a lot. I'm only a year out of bankruptcy, which means no houses or yachts for them to take. Wages are exempt from garnishment in my state. Any judgment against me wouldn't be worth the paper it was printed on. And they know that.

                        Comment

                        Unconfigured Ad Widget

                        Collapse
                        Working...
                        X