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    Paid off student loan

    Hi Everyone,

    I am new to this forum. I have been reading other posts as a guest for a few months however.

    My question regards question 8 on the statement of financial affairs (form B107).

    Within 1 year before you filed for bankruptcy, did you make any payments or transfer any property on account of a debt that benefited an insider?

    I paid off a student loan that was cosigned with my parents. I paid the loan off in December 2018. I do not want them to get involved or know that we are going to file. I guess I feel like they will be ashamed of me, and I feel bad about being in this situation. I will be filing with my wife btw. Anyways this loan had a pay off balance of about 3700.

    Will I need to say I paid this off? The way I read the question it sounds like I will have to. I originally thought anything outside of 90 days wasn't looked considered.

    I thought if I waited 6-8 months after that (this summer) I wouldn't need to list my parents on my forms. I am about 5 months now behind on my creditor payments. I quit paying my creditors last November/December. I could technically hold off on filing because I have not been sued yet, and haven't had any inclination that I will be getting garnished. I do have a few loans in collections though, so I know things are starting to happen on the creditors end.. I only owe my attorney about 750 more until I can file. I really wanted to file this summer, but now I am worried I might need to wait until December..

    Will the trustee go after my parents for that payment, or would they go after Salie Mae? Could I use the 3700 as one of my exemptions since my wife and I will not use the homestead exemption (we rent)?

    I believe that we get around 26k to exempt as we see fit since we aren't using the homestead exemption. At least that's how my lawyer made it sound. I will also ask him this question next week, but the community on this forum seems very informed, and I thought you guys could answer to help alleviate some of the anxiety that I am having.

    Thank you

    #2
    Definitely see what the attorney has to say on this matter.

    When you say you have loans in collections do you mean credit cards that went to collection? Now I can't say this is true in every case, but in my case it took LONGER than a year before I was sued by any of my credit cards for non payment. I was sued and even after that I responded to the court on the last day possible to buy a little more time and more time after the first pretrial. Not that I recommend waiting longer and I only waited because I was stressed out and procrastinating and emotionally drained. I'm telling you this incase you have to wait longer, it may not be troublesome. I would say file as soon as the attorney says it's ok.

    Comment


      #3
      Question 8 reads in full as follows:

      Within 1 year before you filed for bankruptcy, did you make any payments or transfer any property on account of a debt that benefited an insider? Include payments on debts guaranteed or cosigned by an insider
      So, the answer to your initial questions is "yes, you list the payments".

      Will a Trustee try to recover the funds from the creditor is anyone's guess. Will the Trustee try to get the funds from your parents? While such is possible, the Trustee probably won't contact your parents since they did not receive the money. The issue here is disclosure, not what a Trustee might or might not do.

      Des.

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