My chapter 13 has just been comfirmed for 36 months. My student loan has defaulted, but garnishment did not start due to bankruptcy. What happens now? Can I still make payments and the default will go away because payments will be made for 12 months and so on? And, will they request total due when bankruptcy is discharged?
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I did not know you could include student loans in a chapter 13. I know you cant discharge them. -
they become part of the plan. and you will keep paying payments to them after your finish your chapt 13 plan.
im not sure about the back payments on it. i do think that it gets worked into the plan somehow.Im not an attorney or a trustee. You cant trust me either though!
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The trustee will still send payments to the note holders on your loans. You can still make payments on your own if you want, but you are not required to, and they cannot take any collection actions against you while in bankruptcy. One the bankruptcy is done, they will come back after you with both barrels blazing. New laws have recently made it painfully apparent that they don't care if you are a senior citizen and/or living on $800 a month, they will get their money.Originally posted by shantaa
I would suggest making sure the trustee doesn't have an issue with consolidating the loans while you are in bankruptcy. *If* you are allowed to do that, do it, and it gets them out of default, and once the bankruptcy is done you will be in current status. Consolidation takes about 90 days to get processed. Bankruptcy gets a 'suspended' or "automatic forebarance" status put on your loans, but it won't take away the defaulted status that was there before you filed. Good luck.I'm not a lawyer or legal expert, just offering advice on what I may have gone through and/or have knowledge of. Good luck!
341-done
Last date for objections: 02/21/06 - done
Discharged: 02/24/06
Case closed: 3/8/06Comment
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I had a student loan put into my 13 - meaning... it was being auto deducted out of my checking - I called and gave them my case # and they immediately stopped collecting. I am in a 4 year plan and was told that most of (if not all) of the 20K loan would be paid off by the end of 4 years. I had 10 years of 240/month... if anything, that is a perk.
Don't know about the d'fault status though...
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