Expert: Terry Leeders - 9/9/2009

Question
I'm in a Chapter 13 bankruptcy. My lawyer says I can consolidate my student loans and pay on them outside of the bankruptcy(would pay more if I include loans in bankruptcy). I talk with the loan people and they said they could not consolidate my loan because I am in bankruptcy. They said after the bankruptcy I can consolidate. Is that true(what the loan people said or what my lawyer said) and will I still be charged interest on my student loans while I'm in bankruptcy?

Answer
The interest will accrue on the unpaid portion while in bankruptcy.  It would be up to the lender to decide if you are eligible to consolidate.  Check with the US Department of Education for available programs.  I usually have my clients put them in the case, and pay extra on their own (if they can) outside of the plan as well.