Those of you with student loans...

[XploringOptions]

If I file in early June, I will pass the first part of the means test here in Colorado because I was unemployed for part of the time. The reason I am considering filing is because I am trying to get back on my feet so that I can start paying back over $125k in school loan debt (has been in forbearance for several years, getting bigger and BIGGER). My question for those of that have gone through, or are going through this bk process: does repayment of school debt come into play as an expense? I will be paying out at about 1500/month to pay these off. That is a substantial expense! My worry is that they might try to kick me into Ch. 13 because of recent pay stubs when I file (even though I am on a 3-month contract-to-perm position) because it will show a potential net of 5k a month. I want to keep my house (2k) and car (600)...but with school loans and other allowed expenses I don't have anything left for Ch. 13 on CCs. Your thoughts please!

[butterflywings]

If I file in early June, I will pass the first part of the means test here in Colorado because I was unemployed for part of the time. The reason I am considering filing is because I am trying to get back on my feet so that I can start paying back over $125k in school loan debt (has been in forbearance for several years, getting bigger and BIGGER). My question for those of that have gone through, or are going through this bk process: does repayment of school debt come into play as an expense? I will be paying out at about 1500/month to pay these off. That is a substantial expense! My worry is that they might try to kick me into Ch. 13 because of recent pay stubs when I file (even though I am on a 3-month contract-to-perm position) because it will show a potential net of 5k a month. I want to keep my house (2k) and car (600)...but with school loans and other allowed expenses I don't have anything left for Ch. 13 on CCs. Your thoughts please!

School loan payments are definitely an allowed expense when you file BK. I filed BK 7 in Feb and my student loan payment was listed by my lawyer as one of my expenses. My student loan is only $1,650.

[XploringOptions]

butterflywings...

Thanks for your quick reply! That is what I was hoping for...it will help make my case when filing for C7. I have some loans that just came out of the last forbearance, so I will probably start paying those (pending a chat with an attorney next week). Interestingly, the attorney said a law pending student loans is still up in the air, but that he would list them. Personally, I don't see how that aren't acceptable expenses...particularly since they cannot be discharged.

Thanks!

[HHM]

Not that this will effect your BK, but realize that as soon as you file BK, your student loans automatically go into deferment.

[XploringOptions]

Very good info to know HHM.

I can't give this community enough kudos. You really are a spectacular bunch of people

Edit: Just pulled credit report...looks like school debt is only $110k-ish...how sad is it that this knowledge makes me happy!

[XploringOptions]

Not that this will effect your BK, but realize that as soon as you file BK, your student loans automatically go into deferment.

The more I think about this, I want to confirm...

This isn't bad news, is it? You said it won't effect the BK, so I assume not...

Thanks chums!

[butterflywings]

The more I think about this, I want to confirm...

This isn't bad news, is it? You said it won't effect the BK, so I assume not...

Thanks chums!

No, the loans don't affect the BK except for that they are an allowed expense to be used on your mean test and budget.

My loan went into deferment as soon as I filed. I cannot access it online and won't be able to until the deferment ends which is 6 months after filing, as that was what I was told.

Good luck to ya!

[woohoogirl]

I don't know how this panned out for this poster's daughter, but I do remember she was not allowed to use her student loans in the means test...I thought I'd FYI it

http://www.bkforum.com/showthread.php?t=21572

[XploringOptions]

I don't know how this panned out for this poster's daughter, but I do remember she was not allowed to use her student loans in the means test...I thought I'd FYI it

http://www.bkforum.com/showthread.php?t=21572

Because of a period of time not working during the 6 months prior to when I plan to file, I don't anticipate a problem with the means test. Fingers crossed...

[lovescats1956]

Yes, they used my student loan payment as part of my expenses when I filed Chapter 7.