Can I consolidate while in Bankruptcy?

[jeslyn]

Does anyone know if it's possible to go ahead and consolidate school loans while in the process of a chapter 7 BK? Most loans are in forbearance with Sallie Mae- up for repayment in Sept. I would like to consolidate before then to lock in low interest rates. I am unsure as to whether the automatic stay would prohibit me from this. Does anyone know?

 

Thanks! I know I don't post often, but I'm practically always on the boards reading! They are so helpful!

 

Should I post this in the BK forum?

[lcl4403]

I could not refi mine, but mine weren't through Sallie Mae.

[jeslyn]

You couldn't because they wouldn't let you? or what?

 

What/how did you go about asking? What was their response? Did you continue to pay as agreed?

 

Seems to me that they would let you- especially since you have to pay at some point. Hmm...need to find out more about this.

[lcl4403]

You couldn't because they wouldn't let you? or what?

 

What/how did you go about asking?  What was their response?  Did you continue to pay as agreed?

 

Seems to me that they would let you- especially since you have to pay at some point.  Hmm...need to find out more about this.

<{POST_SNAPBACK}>

 

The SL holder at the time wouldn't let me. Said it was in BK, and declined my consolidation because of that. I wasn't paying at the time as I was still in school

[LynnInMN]

I am pretty sure you can't. When in BK, your student loan goes into a suspended/lockbox status. Basically all they can do is apply payments. Collectors/CSR reps cant even access the accounts.

[jeslyn]

The SL's I want to consolidate are in Forbearance until Sept. My 341 is 4/29 so hopefully I will be discharged before September.

 

What do you think the odds are that I will be able to consolidate before I have to start paying? Also, I think the rates are supposed to go up again in July...did I screw myself by filing before consolidating? dammit!

 

There is just way too much ambiguity out there. It is so frustrating.

 

thanks for the responses...

[deyoung5]

I consolidated during my bankruptcy but I filed Ch 13. Different rules may apply.