Chapter 7 & Student Loans

[the_big_dawg]

I'm seeking some advice and came across this site. So here's my situation. I had a Chapter 7 that was discharged back in December 2005. Among the items that were discharged were default school loans. Recently, a collection agency sent a letter to my employer demanding a 15% garnishment of my pay. I showed my H.R. department all the discharge paperwork, which included the student loans in question. They told me that it doesn't matter, that I cannot file bankruptcy on school loans.

This is very confusing to me. I didn't realize collection agencies have the authority to ignore a court ruling. Also, when I originally signed the paperwork for the loans, I was 17 y.o., and did not have parental consent to do so.

So with all that, I'm wondering if I have any options here? Any feedback would be appreciated.

Thanx

[HHM]

Hate to break it to you, but student loans are not discharged in a chapter 7.

Read this post

http://www.bkforum.com/showthread.php?t=2128

Just because you "listed" a debt in your BK does mean it was discharged.

Basically, you are screwed, sorry to burst your bubble.

[lrprn]

When you say "default school loans" what kind of student loans were these? Federal or private? Or did the school loan you money directly?

The twist here is that you signed for the student loans when you were 17 - underage to sign a legal contract. However, given your age at the time, I'm assuming that one of your parents had to co-sign for the student loans with you - am I right?

If one of your parents did sign as a co-signer, then that parent will be held accountable for paying the loans.

HHM is right - if you filed after Oct 17, 2005 then both federal and private student loans are not dischargeable in bankruptcy except under very rare and very unusual circumstances. Did you file after October 17, 2005?

[the_big_dawg]

The judge did discharge it. The student loans show up as discharged on my paperwork.

Hate to break it to you, but student loans are not discharged in a chapter 7.

Read this post

http://www.bkforum.com/showthread.php?t=2128

Just because you "listed" a debt in your BK does mean it was discharged.

Basically, you are screwed, sorry to burst your bubble.

[the_big_dawg]

I had no co-signer for the loans. I filed in July of 2005. What's confusing is that everyone tells me student loans can't be discharged in Chapter 7, but yet the judge discharged them. It's right here in black & white.

When you say "default school loans" what kind of student loans were these? Federal or private? Or did the school loan you money directly?

The twist here is that you signed for the student loans when you were 17 - underage to sign a legal contract. However, given your age at the time, I'm assuming that one of your parents had to co-sign for the student loans with you - am I right?

If one of your parents did sign as a co-signer, then that parent will be held accountable for paying the loans.

HHM is right - if you filed after Oct 17, 2005 then both federal and private student loans are not dischargeable in bankruptcy except under very rare and very unusual circumstances. Did you file after October 17, 2005?

[aachudneymiles]

Sorry but you can Not discharge thems its the law ..its just some items that you can not discharge regardless if you list them or not. If you don't trust our word contact your lawyer about it.. Only thing you mite be able to do is stress that fact that you were 17 and legally unable to sign a blinding contract. You sound as if you want us to side with you on the discharge of your student loans, sorry not happening.
Example:
I could list a traffic ticket on my bk.. just because the judge didn't say it ( isn't discharge ) doesn't mean it is, So when I go to renew my license and they say I have a outstanding ticket I have to pay first...I can say it was discharge in chp7 and they will say it doesn't matter traffic tickets are NOT discharge-able .. There are somethings that can't be discharged a student loan is one of them.
The Judge doesn't go thru every ones schedules and pick whats discharge-able and not that would take forever and bk7 process would be more like 1-2 years or more instead of 3-4 months.. its up to your lawyer or you to know what is and isn't discharge-able

[keepmine]

The twist here is that you signed for the student loans when you were 17 - underage to sign a legal contract. However, given your age at the time, I'm assuming that one of your parents had to co-sign for the student loans with you - am I right?

The Higher Education Act. specifically denies the defense of infancy in trying to avoid paying student loans,

Unless, you had an adverserial proceeding before a bk judge to rule on the dischargeability of those loans, they survived bk.
I bet you just got a generic discharge leter basically saying, "all debts eligible for discharge have beeen discharged".

[aachudneymiles]

The twist here is that you signed for the student loans when you were 17 - underage to sign a legal contract. However, given your age at the time, I'm assuming that one of your parents had to co-sign for the student loans with you - am I right?

The Higher Education Act. specifically denies the defense of infancy in trying to avoid paying student loans,

Unless, you had an adverserial proceeding before a bk judge to rule on the dischargeability of those loans, they survived bk.
I bet you just got a generic discharge leter basically saying, "all debts eligible for discharge have beeen discharged".

agreed
a ruling to say you are unable to pay the student loans due to hardship but this has to be done before you file the bk if I am reading this right, also I never knew about The Higher Ed. Act that just confirms my thoughts of you being screwed. I hope you didnt file soley on your student loans.
Did you ask your lawyer if the loans were able to be discharged? If he said yes he lie.

[keepmine]

When you file your bk petition and list student loans that you wish to discharge, the debtor is the one who must then file the adversery proceeding.
The rest of the bj proceeds as normal but, the student loans are then argued before a judge.

There is such a thing as a hardship discharge outside bk for student loans. It's a long and involved process that can take years. Usually, it boils down to health issues and being unable to work.