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Chp13 & Disbursement to Unsecured Debt/Private Student Loan

Date: Thu, 06/28/2012 - 12:19

Submitted by anonymous
on Thu, 06/28/2012 - 12:19

Posts: 202330 Credits: [Donate]

Total Replies: 4

Chp13 & Disbursement to Unsecured Debt/Private Student Loan


Hello,
I filed for chp13 bankruptcy in CA, in January 2011. I was told when I was consulted that "students loans cannot be wiped out in bankruptcy", I said "ok". I filed, it was approved by the court, I pay the trustee every month, yadda yadda. But I notice the other day that lender for the only private student loan I have ever taken out, is listed with all 3 of the credit bureaus as either one of the following or a conjunction of two or more: adverse account, , WAGE EARNER PLAN, DEFERRED PAYMENT, Student loan, date major delinquency reported, last payment date, and a date closed. As for the loans through my school that I took out, they are all in good standing with NO NOTATION in reference to my bankruptcy or the wager earner plan. I assume this means that the lender for my private loan accepted the terms of the bankruptcy settlement and is due to get disbursement from my trustee, as I pay off my bankruptcy. I understand that my bankruptcy pays of my creditors in an order, secured debt (my car) and the attorney at the top, I don't have any other property to pay for the middle level, and so then they start paying off my credit card bills, etc. Anyhow, my private loan lender is listed in my bankruptcy as "unsecured debt" and is #1 priority in my unsecured debt category. Does this mean, for example, when my attorney is paid off (which is soon) this lender will be getting the percentage of the payment that went to the attorney? Therefore meaning they settled in my case for what they could get, and they'll get it, in time according to the "plan" or order that was OK'd by the courts... That is what it seems like to me. Someone please advise. I would love to get ahold of someone that ACTUALLY knows what they are talking about. I want to post my e-mail but I am not sure if you are allowed to do that. :( Some one please reply, I will be checking back. Thank you.


Private student loans are non dischargable in bankruptcy as are federal loans. Privates will go into the wage earner plan but when the bankruptfcy is discharged, interest will be updated and the balance will still be due. This is just how it works. I have no clue why your other loans are reporting differently. Your attorney should have made this clear to you.


lrhall41

Submitted by SOAPLADY on Thu, 06/28/2012 - 22:15

( Posts: 17315 | Credits: )


Thank you everyone for the responses. I was majorly concerned about this because my mother around 6-8 months after I filed bankruptcy, paid off the full amount owed on the private student loan. So if these people settled in court with my chap 13 filing, than my mother shouldn't of had to pay... so I wanted to be sure that this was not the case. I am also a little irritated that my attorney didn't explain that there could be a difference between a private and federal loan... and that there was even a slight option for filing a hardship. Anyhow, any additional comments? Would love to hear them. And also I just posted a new question about my lawyer screwing me over, if anyone is interested answering that one. Thank you all for your help.


lrhall41

Submitted by LEL427 on Mon, 07/02/2012 - 06:12

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