Post-BK7 + Loans Owed Directly to School + Transcripts

[Happy]

From what I understand, money owed directly to the school (without federally backed loans) ARE dischargeable in Chapter 7. The school disagrees, and tells me that the amount owed is not dischargeable via bankruptcy. They sent a collection agency after me (post-BK7). I sent a cease + desist letter to both the school + collection agency. The collection agency seems to have stopped contact, but the school has not.

1. I have had the final decree (BK7) entered, and am past the automatic stay.
2. I *really* need my transcripts from the school

Any ideas? Help!

Thanks in advance.
(I love this forum.)

[HMT]

So, it's NOT a loan then? Simply funds owed for services at that point? Did you include it in your BK?

[Happy]

@HMT Thanks. Yeah - due to really weird circumstances, I never took out a loan on the amount that I owed to them during that term. I owe them for a few credits (that I did not take out federal loans for) and for a few text books purchased from the bookstore.

* The amount is owed DIRECTLY to the school.

The University's letter to me states:

" It is the University's position that your general discharge in bankruptcy will not discharge the student loans and/or educational benefits that you have received. Below is an excerpt of Federal law supporting the Unicersity's position. Title II, Section 523(a)(8) of the ..code... provides in pertinent part:

The discharge under section 727, 1141, 1328(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt for ab educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a government unit or non-profit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt
(B) from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents.

This amendment only applies to cases filed under title 11, United States Code, after October 7, 1998, the date of enactment of the Act. As a result, student loans or other educational debts, as described in the excertpt of the statute printed above, are no longer dischargable.

if you have any questions..."

[HMT]

Did you sign a payment plan with them, or something saying you would pay back the money? It's odd that the bookstore would let you walk out with a textbook without paying is why I ask. I had been going to a community college and would sign up, not do the payment plan and just pay them at the end of every semester. But I always had to pay out of pocket for books at the time of purchase at the beginning of the semester.

It will be interesting to see what more experienced members say.

[Happy]

@HMT. Thanks. Yes, at this university you can pay for books at the university owned book store by "charging it" to your student id card. So, I made an agreement directly with the university for the books. The tuition for the credits are also owed directly to the university.

[janedoe4266]

Also owe debt directly to school

Hi, I have an almost identical situation (owe money directly to public university that I did not place in student loans) and have had a difficult time finding information relating to this unique situation in my research of BK. I assume it is not dischargeable but wondering how to find out for certain. I also owe a debt to student housing which is also not contained in a loan and wondering the same thing. Are any debts related to university not dischargeable in a BK or does this only pertain to tuition/student loans?


Any information would be greatly appreciated.

[Happy]

What I plan on doing is re-opening my BK7 (yuck!), then filing a motion with the court, reporting the action and asking the court to address the matter. I've kept logs, have sent via fax and certified mail my attempts to dissuade the university from contacting me re: the discharged debt.

I'm also going to keep in mind that I may have remedies under the FDCPA and FCRA.

Additionally, it is my understanding that, if you file for bankruptcy and receive a discharge of the loan, the school can no longer withhold your records. (In re Gustafson, 111 B.R. 282 (9th Cir. BAP 1990)). I also plan on taking action to recover the transcripts.

I'll update as it happens.

[Exployer1234]

I am wondering if the reason they are stating that it is not discharged is because the school actually is calling it a "student loan". Do you have the original paperwork you signed with the school on a payback plan. It should state somewhere on the agreement on whether the debt is able to be discharged in BK. When I went to my 341 meeting the trustee told me that my student loans were not discharged, but when I looked on Pacer it stated he had released me from all debts and included my student loans. I personally know that is not the case on my student loans. So the wording sometimes can be tricky to understand.

[Happy]

@Exployer1234. I think that it's a good question that you're asking and is, essentially, the school's argument.

However, a debt owed to a school is not necessarily a student loan. There are many types of debts that one can "rack up" with colleges and universities, other than educational loans of the type that are addressed in Title II, Section 523(a)(8), such as debts for university provided goods and services. The debt I owe is based upon a textbook purchase and credits for a course that I dropped (late).

I'm pretty sue that the university recognizes this and is simply playing a game of chicken. I'm guessing that this tactic is also common, based upon this post http://www.bkforum.com/showthread.php?t=12593 , which links to this email http://fa1.finadmin.virginia.edu/bur...2006/0119.html. (Thanks to o/p @lrprn for the link.)