I filed bankruptcy but my creditor's meeting isn't until October. I had loads of medical bills from my deceased sons that insurance refused to pay, hence the reason for filing.

I am in the process of transferring to a different college. My previous college sent back a refund for classes I did not take. I will owe this money to the school I am transferring to but not for a few weeks. This is all Student Loan and Pell grant funds. Can my creditors seize this money while it sits in my account even though it shows it is Student Loan money?

Honestly, this is something you'll have to ask your insolvency accountant. My sister is an insolvency accountant, and the way things work in Australia is that, if you file bankruptcy, the accountant freezes your bank accounts, and lets you have enough money week to week for yor living expenses. Everything else is put towards repaying your creditors.

I am not sure if student loans or scholarship money is included in that, though. Presumably your university also counts as a creditor.

If your meeting with your insolvency accountant isn't until October, I suggest you make a phone call and try to get a meeting sooner or at least speak to an accountant who can clarify that for you.

Erin.
::righteous babe::

I don't know for fact, but I don't think so. Jim is pretty smart about this sort of stuff, I'll try to remember to ask him tonight to make sure.

My accounts haven't been frozen as of yet and I filed around a month ago. I did find this online so I hope it answers my question.

Title 20, Chapter 28, Subchapter IV, Part F

(d) No attachment of student assistance

Except as authorized in this section, notwithstanding any other

provision of Federal or State law, no grant, loan, or work

assistance awarded under this subchapter and part C of subchapter I

of chapter 34 of title 42, or property traceable to such

assistance, shall be subject to garnishment or attachment in order

to satisfy any debt owed by the student awarded such assistance,

other than a debt owed to the Secretary and arising under this

subchapter and part C of subchapter I of chapter 34 of title 42.

My guess would be that grant/scholarship/loan money is only to be used for education related costs by law and so it could not be seized to pay off other debts... just my hunch

Yeah, in theory, school loans are just more debt. I imagine it'd be hard to pay off debt with debt.