Fiduciaries Responsibilities on Defaulted Loans

[austin3515]

Participant directed plan, where loans are treated as participant directed.

Participant is full-time, drops down to part-time, and now the loan repayments cannot be supported by his pay, so his payroll deductions must stop.

My only question is what is the fiduciary's responsibility to pursue collection of this amount? Should they sue the participant for collection? Force them into bankruptcy, etc.?

The Plan stipulates that discontnuing payroll deductions is an event of default.

[austin3515]

I just saw the posts two or three topics down that is exactly my question...

http://benefitslink.com/boards/index.php?showtopic=26064