Chapter 7 pending...and Student loan

[nomoneyhoney]

Are you allowed to apply for a student loan while Chapter 7 is still pending? We haven't gone to the 341 meeting but my husband applied for a student loan since we don't have any funds to pay for his tuition.
He maxed out his federal and private loans but his school allowed him to borrow directly from them at a higher rate.
Prior to filing, they told us we can pay them on monthly basis out-of-pocket, however, they changed their mind and wanted the full amount instead. There is no way we can pay them the full amount, so instead they gave us a student loan through them and my husband had to sign a promissory note.
Is this allowed? Do we need to notify the trustee and amend our schedule?

Thank you in advance for your input.

[tcreegan]

Hi again, nomoneyhoney!

With the loan he was forced into, are the payments close to the same as the payments to the school would have been? If they are, you shoudn't need to amend. If I am right, all this is post filing date, right?

So it especially doesn't matter, doubly so b.c. student loans (both private and federally backed) are not dischargeable.

I would keep all the prepetition loans on the schedules, creditors matrix, etc as unsecured loans.

Have the paperwork handy for the 341 meeting, but don't drag it out unless questioned by the trustee which is highly unlikely.

See you later,

Tom in Colo

[nomoneyhoney]

Hi again Tom,
We didn't include this in our application because it happened after filing. But we did include the amount as part of our expense for the month. I'm not sure if the trustee will need a document to provide them of the expense. I made a copy of the cashier's check we issued to the school for that month. We filed July 28th and we issued the cashier's check on July 30th. I don't think the bank account activity showed the amount since I sent him statements 60 days prior to filing and up to the filing date.
I made a copy of the check and the amount claimed on the expense is the same amount. It will be a monthly expense. I'm concerned about the proof since it's a promissory note. It's not included on our schedule since it was created a week after we filed.


Thank you for your help Tom. -=)
I'm about to send our amendment for schedule J.
Some things were unaccounted for. All of our expenses are under the allowance. I hope they don't ask for the receipts coz I may not have all of them especially for food. =)