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Taking care of your student loans is something that is vital for anyone, even someone who is filing for bankruptcy. There are some cases, however, that might be a little strange when it comes to student loan payments and bankruptcy. Miami residents might be interested in reading about how Chapter 13 bankruptcy might affect student loan payments.

In the case of one woman, her student loans ended up being turned over to a collections company after her cosigner filed for Chapter 13 bankruptcy. She claims the loan payments were being made on time as of 20 days prior to her notification. She claims an agent for the collection company was trying to get her to borrow money to pay off $25,000. She said that wasn’t possible and made a payment the day of the call. The woman was perplexed about why she was turned over to a collection agency for her private student loan.

In some cases, private student loan companies work with collection agencies just to collect on loans. If that is what occurred in this case, the woman likely isn’t going to have any difficulties as long as she continues to make her payments.

If the person who declared Chapter 13 bankruptcy was the principle on the loans, the lender may have been notified of the bankruptcy. That may have started the process, but still doesn’t explain why an account in bankruptcy was having payments solicited.

If you have a perplexing loan issue that involves Chapter 13 bankruptcy, consulting with an experienced Florida bankruptcy attorney may help you to understand your responsibilities and rights regarding the collection process.

Source: Huffington Post, “Why is NCO Financial Collecting on My Private Student Loan in Bankruptcy?” Steve Rhode, Dec. 27, 2013