[CLBS] Public service student loan forgiveness and Chapter 13

[Randal French]

Tecla

I have not seen that issue, so I do not know how that would play out.  You might treat it as an executory contract that your clients assume in their ch 13 plan.  You might also check with National Association of Consumer Bankruptcy Attorneys (nacba.org) to see if they have any materials on this.  National Consumer Law Center has a text on Student Loan Law.  I do not know whether there is any discussion of your issue.

You might consider checking with the lender to see if it has had any experience with this, recognizing that the lender may not be particularly helpful if it feels threatened by the outcome.

Thanks.
Randy French

Law Office of Randal J. French, P.C.
Attorneys at Law
P.O. Box 836 
Boise, ID 83701 
(208) 859-6881

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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Tecla Druffel
Sent: Thursday, April 19, 2018 3:35 PM
To: clbs at admws.idaho.gov
Subject: [CLBS] Public service student loan forgiveness and Chapter 13

This question relates to an unfiled Chapter 13 case. Wife has substantial student loans. She works in public service and does not make much money.
She tells me that she is on an income-based public service forgiveness plan for one of her federal loans. She paid a lawyer years ago to make it so the student loan servicer disregards her husband's income (which is rather substantial). Her monthly repayment on this loan is $0 per month. After 120 qualified payments of $0, the balance of this loan will be forgiven.

The clients are about to file a 60 month Chapter 13 case. What, if anything, can I do to keep the client's repayments of $0 intact during the pendency of her case so she doesn't lose five years of qualifying payments?

Anyone had this issue come up? How have you preserved your client's position with regard to the public service loan forgiveness programs?

Thanks,
Tecla

Tecla Elizabeth Druffel, attorney at law

TED BK, PLLC

312 Main Street

P.O. Box 323

Lewiston, ID 83501

Ph: (208) 743-9569

Fax: 1-(888)-877-4307

tecla at lewistonbankruptcylawyer.com <tecla at qwestoffice.net> _______________________________________________
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