Chapter 7 Student loan

[HHM]

Well, you cannot "convert" your chapter 7 since it has already been discharged, but you can file a new chapter 13. Since you do not need a chapter 13 discharge, you can use chapter 13 to buy you 60 months of affordable payments on your student loans, but that is not really an ideal strategy.

[Batiatus]

OK Ive been doing alot of reading. Some people converted their Chapter 7 ot chapter 13 to keep their student loans affordable. NOw my question is, since I filed chapter 7 and it was discharge last May. Can I still convert to chapter 13? is it easy?

[tcreegan]

inability to pay is not student loan hardship

Sorry to tell you biatatus, court rulings have been very clear: inability to pay is not considered to be a hardship and will not get your loans discharged.

Pay stubs, birth certificates, child support court order are not even close I'm afraid. You need the evidence I posted earlier.

Your problem is that you can't show that your income won't increase over your lifetime; your child support will eventually end and then you can pay on your student loans.

My advice is to start working with your student loan lender. Be persistent, be very persistent. Send them all your bills, the alimony order, the child support order, explain that you can only pay X a month, start paying them that amount every month, did I mention being persistent? Especially if you are serviced by Dept. of Ed. talk about a bureaucracy !!

If you get your loans discharged, I will sing your Judges praise to the whole forum then I will move to your district, wait 8 years and go for mine.

Tom in Colo

forget diamonds, student loans are forever.....

[Batiatus]

You will not win the hardship case with these numbers. There is an income contingent repayment plan that you can consolidate your loans into that might lower your payments, but unless you are permanently disabled and unable to work, you will not get a student loan discharge.

Yes with income contingent plan is $478/month compare to $750/month

[backtoschool]

Well the only thing I can provide is my pay stub, my kids birth certificate, my child support order and the amount I pay for my medical

65K a year
$1500 4 kids ages 8, 6 and twins boys 4 years old from my recent divorce
$426 from another girl age 10 yrs old
$680 for medical, dental, vison that i provide for the whole family

Plus they want $500 for student loan payment? How am I suppose to live?

You will not win the hardship case with these numbers. There is an income contingent repayment plan that you can consolidate your loans into that might lower your payments, but unless you are permanently disabled and unable to work, you will not get a student loan discharge.

[Batiatus]

I hope you have some evidence and an expert witness or two lined up to testify that you have a hardship and that the hardship is likely to continue for the foreseeable future.

Well the only thing I can provide is my pay stub, my kids birth certificate, my child support order and the amount I pay for my medical

65K a year
$1500 4 kids ages 8, 6 and twins boys 4 years old from my recent divorce
$426 from another girl age 10 yrs old
$680 for medical, dental, vison that i provide for the whole family

Plus they want $500 for student loan payment? How am I suppose to live?

[HHM]

I hope you have some evidence and an expert witness or two lined up to testify that you have a hardship and that the hardship is likely to continue for the foreseeable future.

[Batiatus]

Hi biatatus,

I can participate by phone, but It doesnt say how. I called Santa Clara county and the phone just keeps on ringing.

Not a good sign is it? Yeah, you can participate by phone but we won't answer it if you call...sounds like my mortgage company....

Tom in Colo

I emailed the CLerk and she gave me # to call for free so I dont have to pay Court call.

Anyways had my case conference today and the sallie mae ask to do a discovery. I didnt object and the judge ordered another meeting in dec. . What should I expect?

[tcreegan]

Hi biatatus,

I can participate by phone, but It doesnt say how. I called Santa Clara county and the phone just keeps on ringing.

Not a good sign is it? Yeah, you can participate by phone but we won't answer it if you call...sounds like my mortgage company....

Tom in Colo

[Batiatus]

i HAVE MY Case Conference managment and on the letter said I can participate by phone, but It doesnt say how. I called Santa Clara county and the phone just keeps on riging.

[backtoschool]

....forgot a ray of hope, biatatus

Courts are increasingly giving a partial discharge of student loans, cutting the loan down to a more reasonable level. Might be prepared to ask for this, figuring out ahead of time how much student loan you could afford, pay all your obligations, and stay at the federal poverty level.

Good luck with this, I hope you win, but I would be asking your lawyer about the garnishment idea...

Tom in Colo

Hardship discharges of federally back student loans are almost impossible to obtain. You have to be unable to work for pretty much the rest of your life, and you have to be able to prove that.

[Batiatus]

....forgot a ray of hope, biatatus

Courts are increasingly giving a partial discharge of student loans, cutting the loan down to a more reasonable level. Might be prepared to ask for this, figuring out ahead of time how much student loan you could afford, pay all your obligations, and stay at the federal poverty level.

Good luck with this, I hope you win, but I would be asking your lawyer about the garnishment idea...

Tom in Colo

HI I dont have a lawyer I filed everything on my own, Thanks for all your advise

[tcreegan]

partial student loan discharge

....forgot a ray of hope, biatatus

Courts are increasingly giving a partial discharge of student loans, cutting the loan down to a more reasonable level. Might be prepared to ask for this, figuring out ahead of time how much student loan you could afford, pay all your obligations, and stay at the federal poverty level.

Good luck with this, I hope you win, but I would be asking your lawyer about the garnishment idea...

Tom in Colo

[tcreegan]

two part post

sorry, hit the wrong button....as I was saying

....haven't you gotten information from your lawyer on what is necessary to discharge a student loan? It is tough, basically you have to prove that you are at your maximum employment level and paying the interest on your student loans would leave you homeless. And that you won't be able to increase your income in the future.

Get the income level of employment in your field, both average and maximum.
Get the long-term projections for earnings in your employment field
Get your income and all court-ordered payments
Get the interest payment on your student loans
Get the federal poverty level for your area

Be prepared to be told that your student loans are not dischargeable....

Tom in Colo

[tcreegan]

Hi biatatus,


Hi I have my Case Conference managment on Augt 23rd this is what I got in the mail Iafter I filed the adversary proceeding. Its teleconference with sallie mae for my student loan ecmc for the federal loans.

ah, this if for the BK Sounds like a conference call with someone from Sallie Mae who handles student loans, your BK judge, and your lawyer. Check though, my daughter had one of these and it was her and judge in court, other party on the phone.

Can you guys please let me know what to expect? Do I need to submit anything prior to the conferecne. I sent a letter of proof of income and child support to both lawyers and a copy to the court a few months back. Please advise and thanks for all your help

You have a lawyer? Haven't they given you