School Loans


E

Elena Patterson

I am sure someone has already asked this question, but if you filed for Chapter 13 can lending institutions deny/cancel federal loans until the bankruptcy has been completed?

Wells Fargo won't disburse anymore loans until my bankruptcy is over which is 4 years from now.

I was told by my attorney that as long as I reaffirmed the loans that they would not be affected. Now I am getting another story.

Please help. I hate to think that I have to put my education off for another 4 years after I have waited already 10.

Elena M. Patterson

--
 
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B

Brett Weiss

Generally, the answer is no. Lenders can't discriminate in the
granting of student loans as the result of a bankruptcy.

One option may be to petition the Court to require Citibank to
disburse.

--
Brett

*****************************************************************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* (e-mail address removed) *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
*****************************************************************

The Small Print: This response is for discussion purposes only. It
isn't meant to be legal advice and you shouldn't treat it as such.
If you want legal advice, speak with a local lawyer familiar with
your state's laws who can review *all* of the facts and the law
applicable to your situation.
*****************************************************************


I am sure someone has already asked this question, but if you
filed for Chapter 13 can lending institutions deny/cancel federal
loans until the bankruptcy has been completed?

Wells Fargo won't disburse anymore loans until my bankruptcy is
over which is 4 years from now.

I was told by my attorney that as long as I reaffirmed the loans
that they would not be affected. Now I am getting another story.

Please help. I hate to think that I have to put my education off
for another 4 years after I have waited already 10.

Elena M. Patterson

--
 
K

K Kim

Elena Patterson said:
Wells Fargo won't disburse anymore loans until my bankruptcy is over
which is 4 years from now.
I do not understand your statement. I thought your BK is "over" at
the moment when you receive your discharge.

Or do you mean that DK is dropped off from your credit reports?
 
J

John Smith

She is probably refering to a Chapter 13 plan that requires repayment of
some of the debt.
VS what you are probably thinking of a Chapter 7 BK.
 
B

Brett Weiss

In Chapter 13 cases, you don't receive your discharge until you
complete your Plan, which is normally 5 years from the date the
case is filed.

--
Brett

*****************************************************************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* (e-mail address removed) *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
*****************************************************************

The Small Print: This response is for discussion purposes only. It
isn't meant to be legal advice and you shouldn't treat it as such.
If you want legal advice, speak with a local lawyer familiar with
your state's laws who can review *all* of the facts and the law
applicable to your situation.
*****************************************************************
 
B

bberry

I relied blindly on the frequent statements that BK alone cannot be
used to deny a student loan.

Not true for PLUS loans, which even though are backed by the
government, are denied if there has been a BK in the last 5 years.

Very unfair IMHO!
 
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E

Elena Patterson

I just found out through my attorney, here in NC, that it depends on the lender. If the lenders policy is to cancel disbursements for federal Stafford loans than they can and all I can do is wait for discharge papers to receive another loan.

It's unfortunate because I now must wait 4 years to complete my degree.

--

Generally, the answer is no. Lenders can't discriminate in the
granting of student loans as the result of a bankruptcy.

One option may be to petition the Court to require Citibank to
disburse.

--
Brett

*****************************************************************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* (e-mail address removed) *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
*****************************************************************

The Small Print: This response is for discussion purposes only. It
isn't meant to be legal advice and you shouldn't treat it as such.
If you want legal advice, speak with a local lawyer familiar with
your state's laws who can review *all* of the facts and the law
applicable to your situation.
*****************************************************************


I am sure someone has already asked this question, but if you
filed for Chapter 13 can lending institutions deny/cancel federal
loans until the bankruptcy has been completed?

Wells Fargo won't disburse anymore loans until my bankruptcy is
over which is 4 years from now.

I was told by my attorney that as long as I reaffirmed the loans
that they would not be affected. Now I am getting another story.

Please help. I hate to think that I have to put my education off
for another 4 years after I have waited already 10.

Elena M. Patterson

--
 

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