Student loan, should I pay ?

[brokentex]

My wife and I both have student loans, her's is 2 months behind, mine is 1 month, we were going to defer them, but I was worried that it would mess up the expense form because technically they would not be a expense when we filed if they are defered. My question is should I pay them up to current if we are going to file in the next 5 days ? I have heard they get defered on the automatic stay and you resume maknig payments once your case is closed. Anyone have experience in this matter ?

[StaciMM]

Contacting them now, to work something out, will be in your best interest if it is something you can do. It can make the difference in them being 'paid as agreed' before the BK, or delinquent before the BK and not a positive account again until after you restart payments.

I was behind on mine, only made one payment in 05 and that was the month before we filed. I wish I had contacted them sooner, they would have put in a deferrment. Instead, I have all those late payments. BUT they were current at the time I filed, so now report 'paid as agreed, was late'.

[Rona123]

Staci is correct, you should try to establish that you are paying your loans prior to filing. My student loans were on a voluntary forbearance, and I had to take them out of forbearance and start making payments prior to filing so that I could claim them as an expense.

Once you file, they will go back into automatic deferment until discharge, at which point you can start repaying your loans.

Good luck!
Ron

[cpw111]

I did nothing with my student loans and they now show as defered on my credit reports. My loans are with the US Dept of Education. I dont know what you have to do to get a late payment but it must be drastic because my record is clean. I was behind two months when I filed also.

[so-beyond-broke]

Question about Student Loans

My student loan which has been consolidated and deferred 2x because I was not working is due the first week of May. I plan to file bk next month. Since it is due in early May that will mean that I will have to send out a payment of $170 which is going to be hard to swing even though I am working. I was able to defer before because I was collecting unemployment, but I guess since now I am working I have no excuse. Should I go ahead and make the payment so that I can claim it on my expenses?The student loan will eventually become an expense anyway which is why I waiting to file (besides doing research on bk and getting the $ to file) so that I can have another expense to justify why I need to file bk? Should I defer again - on what basis? Should I even call them and explain I plan to file bk? Should I just make the first payment and wait for the automatic stay to kick in? Also since I did a consolidation with the company - $50 is due May 2 and $120 is due May 9. Should I pay one over the other, but still claim them both as expenses? SL's take priority over the CC's anyway right? After all we can't discharge SL's.

Thanks

so-beyond-broke

[StaciMM]

So-beyond, discuss w/ your attorney! I'm really not sure if the loans have to be in payment status when you file, since regardless they'll have payments after you file.

You won't need to personally notify them that you're filing/have filed, but it wouldn't hurt to call a couple of weeks after you've filed and confirm that they have the info.

[HopeinHorizon]

Student loans and bankruptcy cause a lot of problems...

I just pulled my credit report, and I had a US Bank Credit card, and a US bank checking account that I included in my bankruptcy...

Get this, they also charged off 14k worth of student loans... I am not sure if I should say something or not... I am currently in school for my master's degree, so they were in deferment anyway, but I am kind of excited at the thought of a clerical error saving my butt!!!

When I consolidate my loans next year, and US bank states that they have no account for me... I am not sure what I should do..

I almost feel relieved... but also know that it is probably to good to be true that the loans are really gone...