Question

Student Loan Bankruptcy

Asked 21 July 2008 · 2 answers

The question

OR

My husband and I finally got out of out Chapter 13 Bankruptcy about a week ago. We filed chapter 13 in July of 2005. We had a student loan that we were making payments on until they stopped taking payments I tried to continue payments but I didn't get anywhere. Today I received 5 letters from an attorneys office and so I called them to resume payments only to find out that they wanted all the money.

The guy there told me to cash out my 401 k or take money on credit cards or re-finance the house to pay it off. I explained the situation under which we filed bankruptcy and we were not going to take a loan or anything like that but I would like to make arrangements to pay. She started by saying we owed $5200 but she would settle for 4350.

I can't pay that. There's no way. How do I deal with situation. Does anyone have any advise?

From the LawyerCentral forum archive. Originally posted 21 July 2008 on a legal forum that has closed. Names and contact details were removed. See the original (Internet Archive).

2 answers

Visitor answer 24 July 2008

Honestly, have you consulted an attorney? Most will do the first meeting for free and be able to give you a straightforward answer on how to proceed. I would imagine that you would be able to restructure the agreement to continue paying off the loan incrementally, but I don't know all the details of your situation. It would be important that you have all documenation of all interactions and transactions with the collection agency and from your student loans... You can be sure of one thing... they will not be dismissed and you will have to pay them off. Bankruptcy doesn't fix student loans... they are almost impossible to get rid of.

Hope this helps.

Visitor answer 8 September 2008

Thanks... we got a lawyer and he worked it out. I don't know exactly how, but it was totally worth it.

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