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ok to make student loan payment after filing ch 7?

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    ok to make student loan payment after filing ch 7?

    I (my lawyer) filed ch 7 for me a couple weeks ago, and our 341 is just before Christmas. I have a private student loan that was cosigned for by my mom. I will be returning to school in January, so it will be put back into deferment then. However, there is a small payment due for 12/1 that is now a couple days past due. I talked to Sallie Mae this morning, and they said as long as I pay it before 12/15, there won't be a late charge. Would it impact my bk negatively if I make a payment (it's less than $100). I could get a money order and mail it to them if that's better.

    I don't want my mom to have to worry about them contacting her saying it's late and/or jeopardizing financial aid for January. Another question is will there be a problem with me getting financial aid in January since my bankruptcy won't be discharged by then? I mean, would the school's financial aid office say, "Sorry, we can't issue you financial aid because you have an open bankruptcy case"? It would only be government student loans (no private student loans).

    #2
    You may make payments as this is a secured debt (by law) and not dischargeable. If it were a preferential payment that would be evenly disbursed by your Trustee, then it is a preferential payment. The student loan is due 100%, so paying is your choice. It will not be discharged. 'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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      #3
      Are payments on IRS installment plans also okay after filing, or might they also be seen as preferential? (Mine isn't part of a court judgment or something, I just worked out a plan with the IRS. The US Treasury is the only creditor I'll have paid over $600 to over the 90 days prior.)

      After when can you start making payments again without preferences being suspected? After the 341, or do you have to wait for discharge or something?

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        #4
        IRS payments are not a preference since they are "priority" debt and non-dischargeable. In the scope of the original question, about making certain payment "after" filing... I don't think it would matter anyhow unless you used funds that were actually property of the B/K Estate..
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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          #5
          Originally posted by mtbc View Post
          Are payments on IRS installment plans also okay after filing, or might they also be seen as preferential? (Mine isn't part of a court judgment or something, I just worked out a plan with the IRS. The US Treasury is the only creditor I'll have paid over $600 to over the 90 days prior.)

          After when can you start making payments again without preferences being suspected? After the 341, or do you have to wait for discharge or something?
          OK, here is how it works. I owed IRS 27K. I was on an installment plan. Once I filed C7, and IRS got notification and told me in letter from another address, NOT to pay anymore at this time. IRS ordered me to cease. However, it was not a forgiveness. It was a respet. Once my estate was settled (I was an asset case) they got paid, I got my dunning letters again and had to set up another payment plan. IRS was surprisingly nice. It is working out well for me at this time. 'Hub
          If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

          Comment


            #6
            you are fine to continue making payments on the student loans- the debt is non dischargeable. However, if you have already filed- they are violating the automatic stay by asking for a payment..

            Originally posted by tdawg View Post
            I (my lawyer) filed ch 7 for me a couple weeks ago, and our 341 is just before Christmas. I have a private student loan that was cosigned for by my mom. I will be returning to school in January, so it will be put back into deferment then. However, there is a small payment due for 12/1 that is now a couple days past due. I talked to Sallie Mae this morning, and they said as long as I pay it before 12/15, there won't be a late charge. Would it impact my bk negatively if I make a payment (it's less than $100). I could get a money order and mail it to them if that's better.

            I don't want my mom to have to worry about them contacting her saying it's late and/or jeopardizing financial aid for January. Another question is will there be a problem with me getting financial aid in January since my bankruptcy won't be discharged by then? I mean, would the school's financial aid office say, "Sorry, we can't issue you financial aid because you have an open bankruptcy case"? It would only be government student loans (no private student loans).
            Filed Pro Se: 10/16/2009
            341 Scheduled: 11/23/2009
            Last Day for Objections: 1/22/2010
            Discharged: 1/28/2010

            Comment

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