State license while in a chap 13

[karm43]

Its not the bankruptsy that im worried about its the word default on my loan if it says deferment i should be ok. If you do not pay the loan you cannot renew your license. I had gotten 2 months behind 1 time and they threatned to take my license. I do not have any of the original paper work on my loan and I had financed all the small student loans into 1. Guess I should just wait and see. I asked my attorney he like its in your chap 13 well ya i know that but don't think he gets what I'm saying. Thanks

[HHM]

Side Note

Specifically with student loans, the fact that a debtor would lose their license if they stopped paying the student loans, has been accepted by courts as a reason to separately classify student loans in chapter 13 bankruptcy and actually pay the student loans during the chapter 13.

[karm43]

Thats what I was asking so I am gonna further pursue this and see if thats what I have to do.

[karm43]

Do you know anywhere to find that info so I could get a copy, is that in any bk manual or something?

[Flamingo]

They may have given that as the "Reason" but it is highly unlikely it was the "sole" reason. Bankruptcy is a "factor" but it is rarely the "deciding" factor. In any event, the thing is, when a person is facing BK, it is not as if they have a "real" choice. If you have too much and can't pay it, at some point, you will need to do something. So, the perceived "employment stigma" of bankruptcy is a red herring because there isn't really an alternative to not filing.

We were in Chapter 13 when he renewal came up - specifically indicated to us in writing his clearance would not be renewed due to our filing. He was hoping to keep it as it would have kept some employment doors open for him but he was forewarned ahead of time it would not be renewed due to filing BK. He obtained the clearance in 1996 so it's not like he had it a short time....we filed early 2002.

[karm43]

Sorry to hear that. Thats terrible. This is actually about the status of my student loan like I said I have to wait and see but I think I have to pay it or lose my license. If I lose my license I lose my lively hood I will lose everything. I am sure the courts will not let that happen....

[sockmonkey]

Coming across this late, but... if you have a professional license in any state, check your board's rules closely. Some are beginning to adopt rules pertaining to student loan defaults - you default, you may not get your professional license renewed.

I wonder if federal funding to state institutions of higher learning are driving this increase in a state's decision to go along with this.