Student loans / undischarged debts after discharge

[Rona123]

Hi everyone,

I'm a few days away from discharge (finally!) and am starting to think about my student loans, which went into automatic forbearance when I filed BK7.

Does anyone know how the repayment process re-starts after discharge, particularly with Sallie Mae? Will they automatically start billing me again, or do I need to contact them to change my status to repayment? This might be the same for any and all undischarged debts, so all experiences are appreciated!

Thanks!

Ron

[lostsoul23]

They will get notification from the courts and billing should resume. *However,* considering the fall out on student loans if they default, there is no harm in calling them and giving them a heads up. (I did that.)

[anonymuse]

Let's see if I got this right.

My student loans are on automatic payment from my checking account. If I file Chapter 7 they will go into automatic forebearance. And then, when I am successfully discharged, I will resume payments.

Do I have to pay them back for the amount I didn't pay during the automatic forebearance, or is the loan just extended a couple of more months?

[lostsoul23]

Let's see if I got this right.

My student loans are on automatic payment from my checking account. If I file Chapter 7 they will go into automatic forebearance. And then, when I am successfully discharged, I will resume payments.

Do I have to pay them back for the amount I didn't pay during the automatic forebearance, or is the loan just extended a couple of more months?

When you file BK period and they get notification they go into forebarance. If it's 7, it stays til the case is done, in 13's, the file a proof of claim to get paid with the rest of the plan disbursements.

No, it just pretty much puts a 'hold' on things until you're out of BK. Once they get notice of discharge they will expect the $ to start coming in again.

[anonymuse]

Thanks lostsoul, but do you know if I then have to make up the back payment that I missed during the case, or do the payments just continue as normal (until the entire amount is paid off)?

[Rona123]

Anonymuse,

I've been in forbearance before, and no, you don't have to make up the back payments. Interest does keep accruing, however, so your regular monthly payment might be slightly higher than it was before you filed, but you won't owe any back payments.

I'm still trying to find out if I need to contact my student loan administrator or if they will automatically contact me once they receive word of my discharge. I want to delay retarting my payments as long as possible to put a few $$ in the bank, so I'm going to avoid talking to them until I have to!

Ron

[lostsoul23]

Anonymuse,

I've been in forbearance before, and no, you don't have to make up the back payments. Interest does keep accruing, however, so your regular monthly payment might be slightly higher than it was before you filed, but you won't owe any back payments.

I'm still trying to find out if I need to contact my student loan administrator or if they will automatically contact me once they receive word of my discharge. I want to delay retarting my payments as long as possible to put a few $$ in the bank, so I'm going to avoid talking to them until I have to!

Ron

Anonymuse - just like Rona mentioned, interest still accures, but no, you don't have to make up the payments. If you haven't conslidated those loans through somewhere like William D Ford or something, might not be a bad idea either.

Rona - don't hold your breath on them contacting you. I know you'd probably rather have teeth pulled then call them, but, if you don't, and they aren't on top of it and contact you, it might end up biting you. I gritted my teeth and told them, and I just now got a bill this month. (Went back into repayment status in March.)

Good luck.