Private Student Loan

[ccidiot01]

uggghhhh

I had a private student loan that I included in my bankruptcy, the company funding the loan did not petition and even filed a claim for the loan amount. They were distributed a portion of the funds we paid the trustee and cashed that check. This was in 2007. They have now forwarded the debt to a collections agency...can they do that since they filed a claim, did not petition and then cashed the disbursement check?

Thanks for the insight.

[tcreegan]

student loan not discharged

Unfortunately I think they can. With the new BK law,student loans, neither public nor private, are discharged in the BK. But that does not mean the lender is not entitled to their share of the BK distribution. They file the claim, take the distribution, that covers part of the loan, you are on the hook for the rest.

probably not what you wanted to hear,

Tom in Colo

[keepmine]

Unless, you filed a separate AP to rule on the student loans and the judge ruled in your favor they survived bk.
Private student loans are as difficult to discharge in bk as gov't backed loans.

[ccidiot01]

Thanks, that's what I was afraid of...I hate that the company waited 3 years and sent it to a collection agency without giving me the opportunity to handle prior...such is life. Thanks again to you both!