Question even a couple of attorneys couldn't answer.

[GettingGoing]

We plan to file ch7 very soon. My wife and I both have federally backed student loans and I know they can not be discharged. My wife also has a loan that is listed on her credit report as a student loan however its not really a student loan. It was a private loan for books purchased through a private company that had no affiliation with any type of school. These books were written to teach you material that would then allow you to take tests from a college to get credit for the class. It was a way to get a degree without ever taking an actual class.

Here is a link to the company you buy the books from.

http://www.ripoffreport.com/adult-career-continuing-education/the-college-network/the-college-network-the-colleg-y86aw.htm

[MSbklawyer]

So what's the question?

[GettingGoing]

So what's the question?

I am sorry,forgot the question. Will this loan be discharged in bk7?

[MSbklawyer]

I am sorry,forgot the question. Will this loan be discharged in bk7?

[backtoschool]

If the private loan is the same type of loan that you use for tuition at schools, and the loan is part of the gradplus or any other private student loan program, then the loan will not be dischargeable. If it is just a general consumer loan and the loan could have been used to purchase anything, such as appliances, a computer, a lawnmower, etc and you used the loan to purchase books, then that loan would be dischargeable.

[GettingGoing]

The actual loan was through a bank.(southeast financial) It was paid directly to the college network. I dont see how this would be any different than if i was to order a series of books like the Rosetta Stone. You can call them and order your books. They use a separate company to finance. Its the exact same thing. The college network is in no way affiliated with any school of any kind and the books they sell are not books for any class offered by a school.

[backtoschool]

The actual loan was through a bank.(southeast financial) It was paid directly to the college network. I dont see how this would be any different than if i was to order a series of books like the Rosetta Stone. You can call them and order your books. They use a separate company to finance. Its the exact same thing. The college network is in no way affiliated with any school of any kind and the books they sell are not books for any class offered by a school.

The fact that the loan was paid directly to the college network, and that the books were for obtaining college credit is what might make these non-dischargeable. It will all depend on whether the bank was issuing the loan under the federal private student loan program.

[HHM]

Bottom line, you will probably need to bring an adversarial proceeding to bring any degree of certainty to the status. If you simply let it ride through the BK, and the company starts hounding you again, the only way to make them stop would be to go back and have the AP to determine dischargeability.

[GettingGoing]

Bottom line, you will probably need to bring an adversarial proceeding to bring any degree of certainty to the status. If you simply let it ride through the BK, and the company starts hounding you again, the only way to make them stop would be to go back and have the AP to determine dischargeability.

So we could just follow through with the bk7 and if after everything is said and done they come after us for the loans then we could just pay them and be done correct?