One said student loans get deferred for 6 months, then I pay them outside of the ch. 13. Another said you can't pay on them because then they are considered preferential. The first guy said stop paying on my brand new lending club loan because it wasn't used for luxuries and won't be an issue, the other guy said pay at least 2 more payments just in case, though the risk is low. We are meeting with 2 other attorneys next week- how the heck is one supposed to muddle through and pick the one with the most accurate info. Clearly price is not the only factor, sigh.
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This sounds like two different topics. The preferential payment is an issue before filing. If you pay any creditor more than $600 within 90 days of filing BK, the trustee can get that money back from the creditor to distribute among all of your creditors. As far as loans being deferred during a Chap 13, based on what I have read here, experiences vary. You should contact the lender after you file to find out what their policy is. Whether or not the loan goes into deferral, interest will continue to accrue. There is nothing to stop you from paying your student loans during a Chap 13. But, they may or may not be allowed as an expense when determining your plan payment. That is something else that seems to vary by court or maybe by case.Originally posted by gava1910 View Post
The second attorney is more conservative. He wants you to keep paying so that it is harder to prove that you incurred the debt without an intent to pay. You can read the law and decide for yourself. The relevant bankruptcy code provision is section 523(a)(2) Be sure to read the whole thing through subparagraph (C). http://www.law.cornell.edu/uscode/text/11/523. http://www.law.cornell.edu/uscode/text/11/523.Originally posted by gava1910 View Post
Posting here is a good start. You're among many who have been right where you are. I learned so much on this site that I knew all the answers to my questions before meeting with any attorneys. The attorneys simply confirmed what I learned here.Originally posted by gava1910 View Post
Price should be the last factor to consider if you can't decide between two attorneys. This is not a place to cut corners. Besides, in a 13 most attorneys will allow you to pay most of the fee through the plan. In most cases, if you aren't paying 100% of unsecured claims, the part of your plan payment that goes to attorney fees doesn't increase your plan payment. It just reduces what goes to unsecured creditors.Originally posted by gava1910 View Post
Keep asking questions here and keep meeting with attorneys until you find one you are confident in.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
You come back here and check. BKforum has some trusted experts to advise you. Many of us (me for one) give advice based on our personal experience, but there are some legal experts that generously give their time to help.
I think your gut instinct might be telling you to keep looking. You want an attorney that specializes in BK and does a lot of 13s, but you don't want a BK mill. Look to the smaller firms. My attorney wasn't the least expensive, but when he gave me an answer, and I questioned it, he would explain further. He was also a trustee (not my trustee,) so I hoped he would have a good relationship with the other trustees, and know what would fly and what wouldn't in my area. He did. Wasn't the most charming guy, could get a little snarly once in awhile, but he did know his stuff.Comment
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Pjmax gives good advice.
Take your time and schedule more appointments. Unless you have an issue pending--such as an imminent lawsuit--you do have time.
"To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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