341...omg...

[biggomez777]

When in doubt, ALWAYS go with the attorney. While I have opinions, theirs are usually correct. Mine's just based on my obsessive research, not a law degree of any sorts. So I'm glad that the loans, while showing up IIB, won't hurt my parents.

[desperate&broke]

As far as I know, I don't believe a student loan CAN show up as IIB. That may be another thing that keeps this from moving on.

I truly hope this is accurate!!!

[desperate&broke]

I didn't realize a student loan could show as IIB, huh?

I asked the attorney if my sister cosigning and me filing would affect her credit. She said it will not affect it but that her credit report will show IIB when I file.

[biggomez777]

I don't take your suspicion personally momof5. It doesn't add up to me either. The sum we're talking about here is ~$1200(max) if they go back 6 months, $2400 if it goes back 1 year. ($200/month in Sallie Mae loan payments)

No, my father has recieved no money from this. I pay my loans every month, minimum payment or rounded up to the nearest $10(not sure why, just do).

And, currently, the Trustee is NOT offically pursuing this. I had my 341, she didn't close?(not sure what it's really called when the 341 is all ok) the meeting, but no other meeting was scheduled. She said she would have to think hard about making the Sallie Mae loans pref payments. I bring it up here because I'm hoping that you guys will confirm my suspicions that the whole thing is total BS and she's blowing smoke out of every orifice she has.

As far as I know, I don't believe a student loan CAN show up as IIB. That may be another thing that keeps this from moving on.


And as a side note: My lawyer agrees that if this even gets to court, there's no way a BK judge will allow it through. It's just too far out there.

Any other questions just ask, I know I'm not always the clearest writer.

[momof5]

Something isnt adding up here.

The Trustee isnt going to be able to take money from someone who never received money. Thats just not going to make it through a BK judge. Its possible that the Trustee is just clearing the way to get back money from Sallie Mae. But even still many many many of us have student loans. They are not dischargable. So why would a Trustee pursue this?

The only thing I can come up with is there is something else that has happened here. How much are we even talking about? If it was a huge sum in excess of what was owed then that right there would explain a little bit but still not why they would try and get money from your Father.
As of this point this is between you and the Trustee. Your Father will get his turn if this goes further and as long as you can show proof (cancelled checks) and your Father doesnt have large deposits into his bank from checks from you. Then they cant get blood from a stone.

Either way I still think there is something your not telling us about this whole situation. Its possible your not even aware of the whole reason behind the Trustees motives. Although my guess is you know something. Sorry to be so blunt.

[NowImDownInIt]

Big, I am so interested in the outcome of this. I too have a student loan through Sallie Mae that I pay religiously because it is a loan that my sister cosigned. Mind you, our attorney (when I was going to initially do the BK) told me to continue paying on this loan (which I have every intention on continuing to do so). Now, reading your posts makes me even more scared to file This is the sole reason I have not filed. Because my sister's credit report will show a IIB because of me. I don't think thats fair at all!!!

GOOD LUCK BIG AND KEEP US POSTED!

I didn't realize a student loan could show as IIB, huh?

[desperate&broke]

Just got off the phone with my lawyer, and this gets more interesting(to me).

If the Trustee decides to go the route she said she would during the 341, and she wins, they take money from my father that he never received.

Not quite sure how that works...I figured they'd take the money from Sallie Mae, as that's where the money went, and absolutely no $$ went to/through/anywhere near my father.

Big, I am so interested in the outcome of this. I too have a student loan through Sallie Mae that I pay religiously because it is a loan that my sister cosigned. Mind you, our attorney (when I was going to initially do the BK) told me to continue paying on this loan (which I have every intention on continuing to do so). Now, reading your posts makes me even more scared to file This is the sole reason I have not filed. Because my sister's credit report will show a IIB because of me. I don't think thats fair at all!!!

GOOD LUCK BIG AND KEEP US POSTED!

[biggomez777]

Just got off the phone with my lawyer, and this gets more interesting(to me).

If the Trustee decides to go the route she said she would during the 341, and she wins, they take money from my father that he never received.

Not quite sure how that works...I figured they'd take the money from Sallie Mae, as that's where the money went, and absolutely no $$ went to/through/anywhere near my father.

[biggomez777]

Ok, yea, I don't owe my lawyer anything, I owe Federal Gov't(stu loans), Sallie Mae, various medical debts, and various CC's. No secured, no taxes.

[justbroke]

Can the trustee come after the payments I've made to Sallie Mae? As in, take the money I've paid to Sallie Mae and spread it amongst the creditors? That's my other concern.

This may be what the Trustee is trying to do... to distribute it to others. However, having read back everything, this may not be doable. The Student Loan is not dischargeable but is not the highest priority debt.

The Trustee could say that there are other secured creditors which need to be paid before the next "priority" is done. The priorities are usually in the order of Trustee, then your Lawyer, then Priority Tax Debts, then Secured Creditors, then the unsecured creditors.

From what I know, the Trustee can't distribute the money (if they in fact avoided the "transfer" of the payments to the Student Debt) to the general unsecured creditor pool (usually the credit cards). This is because education debt has higher priority.

Will be interesting to hear what the Trustee is really trying to do.

[biggomez777]

Can the trustee come after the payments I've made to Sallie Mae? As in, take the money I've paid to Sallie Mae and spread it amongst the creditors? That's my other concern.

[BROKENN]

I am soooo glad you have a good lawyer!

This is stupid, blood from a stone is correct!

Sorry!

[JRScott]

Dang just read this, seems unbelievable.

I think you're lawyer will prevail . Good Luck

[momof5]

All payments went straight to Sallie Mae. Do not pass go, collect all the blood from the stone that you can. The only thing my dad did was sign on the dotted line so my % would go from ~12 to ~7. He's never made a payment, received a bill, or anything. I THINK he gets a yearly statement on how much is owed since he's on the loan, but it's just a yearly thing.

I think you have nothing to worry about. There is no BK judge who is going to order your Dad to pay back money he has NOT received. Unfortunately now that the Trustee has initiated this it will probably be a drawn out process. I have been reading alot of different cases lately and it seems every now and then a trustee will 'test' the system a little bit. Not sure if its to get noticed or because they really are desperate for a some extra cash. Either way the frivilious ones seem to be shot down pretty hard by the BK judges who are completely impartial and work for protecting and upholding BK laws.

[biggomez777]

Show me the $$$$$

All payments went straight to Sallie Mae. Do not pass go, collect all the blood from the stone that you can. The only thing my dad did was sign on the dotted line so my % would go from ~12 to ~7. He's never made a payment, received a bill, or anything. I THINK he gets a yearly statement on how much is owed since he's on the loan, but it's just a yearly thing.