Q: I'm unable to afford my student loan payments and my lender sent them to collections. They're threatening to put a lien
on my property (which was an exempt asset in my bankruptcy). Is this legal? How can I get a fresh start if a creditor can still do something like this?
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A: By filing a Chapter 13 Bankruptcy (if it is legally & financially justified) you can put the student loans into a 5 year payment plan, which should make things temporarily easier for you. Chapter 13 Bankruptcy is not simply filling out forms. Trying to handle this matter yourself is not wise. You do not know the USBC, you do not know the local rules of Bankruptcy and if there was an adversary proceeding started against you, or an objection filed to your plan, you would be like a deer in the headlights.
David Earl Phillips agrees with this answer
A: It is legal. The bankruptcy issues in the past and present default on nondischargeable debt are not related.
David Earl Phillips agrees with this answer
A: It is legal for them to do this. Unless you filed an adversary complaint to discharge the student loans, they are still your bills. Further while a chapter 13 or 7 filing will have a deferment period, fees and interest continue to accrue.
David Earl Phillips agrees with this answer
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