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Question I have... What kind of Lending Tree mortgage is a 360/180 balloon? Looking forward for any comment. Second question of mine... I still haven't found the answer to my questions after searching this site and reading several books on bankruptcy..

For a chapter 7 BK self-filer with almost no assets, how will Pell Grants and student loans be considered by the Court? Pell Grants that would take someone over the exemption in their state would be considered "fair game" would they not? Adding a Pell Grant to someone's assets below the Florida $1,000 personal property exemption takes them over that by several hundred dollars...then what?. Will the court take that amount over $1,000 away? Should someone pay some of their bills and deplete the excess cash from the Pell Grant?.

Also in this situation are student loans for several thousand dollars. The checks are sitting at the college waiting to be picked up. Can the court take that money away and pay other creditors with it? Should someone cancel the loans before filing? I was hoping to use the money to buy an automobile once my case is over..

This is a topic not often covered in the BK books or online. Any help by an attorney or someone who has filed under these situations would be very helpful!..

asked Mar 02 at 13:07

Antonio's gravatar image

Antonio
08


Hmm... I need to find out myself. I don't know what is the right answer to your question. I'll do some research in Google and get back to you if I got an answer. You should email the people at Lending Tree as they probably could give you an answer..

answered Mar 02 at 13:17

Andre's gravatar image

Andre
1578

I recently filed bankruptcy while in school. Pell grants and student loans are not considered income, but I will tell you not to be tempted to use this cash (if it becomes available to you) for anything other than school. I was on my last semester and my VTAG (a state grant) and student Lending Tree loan disbursement was not even mentioned. Your best bet is a good lawyer. Incidently, regardless of bankruptcy I was able to consolidate my loans at 3 1/2 % interest, and it was the best thing I could have done..

Best of luck to you, and whatever you do, finish school!!..

answered Mar 02 at 14:04

Madeline
's gravatar image

Madeline
3799

This is an awesome thread. I have been considering going back to school, but was not sure about pell grants, etc.. with CH7. I have been told that federal loans have no credit check, but I have not checked into it yet...

answered Mar 02 at 14:26

Jaelyn
's gravatar image

Jaelyn
943

Student loans indeed DO NOT have a credit check. This was done decades ago so people with a bad credit history could go to college. When I called Sallie Mae, they did tell me that when I filed BK I could not get the loans until the process was completed. As for Chapter 13 I am unsure as to how that effects the student Lending Tree loan process. So if someone is hoping to go to college, apply for the loans FIRST then file BK..

I know of too many people who have borrowed and then come out of college with the wrong plan. That's what it really boils down to. For the post-college graduate their only goals should be to 1) live as cheaply as possible, whether with parents or friends they can trust 2) find a career in their field, get their foot in the door with an internship or atleast make contacts 3) get settled and ask for a forebearance until they can start making the $300-$1,000/mo payments on said loans..

Does anyone have advice about the Pell Grants? Just a few more reassuring voices would put many of us at ease...

answered Mar 02 at 14:45

Jacoby's gravatar image

Jacoby
1654

You might try asking on Prairielaw.com. Cathy Moran is a bk lawyer in CA and answers questions on their bk board..

Newstdt..

answered Mar 02 at 15:56

Cora
's gravatar image

Cora
4592

Wow! Thanks for the website. Very kewl.... :) :) Once I find an answer I will post it here for everyone's use...

answered Mar 02 at 16:25

Zander's gravatar image

Zander
1149

Hard.

Pell Grants are not debt. These are education grants that do not need to be paid back. Student loans on the other hand are NOT dischargeable in BK except in the most extraordinary circumstances. Also, they can not be used by either the courts or creditors for other purposes. If you are not going to use the loans for educational purposes, then you may get into trouble if you use them for other purposes..

Fla-tan..

answered Mar 02 at 17:12

Melissa
's gravatar image

Melissa
3146

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