Old Student Loan

[jjosephmn]

I filed for chapter 7 in March. According to the court it was a standard discharge. Recently I received a notification from the Dept of Education that a student loan I listed for discharge was not included in the discharge. First, this student loan is from 1984 before the current law was put in place regarding student loans. At one time in my bk process I thought I read that this is such an old student loan that I could file a complaint. I'm not sure how to file a complaint. The other odd thing is that I did not receive notice from the bk courts that this debt would not be included in my discharge. Just wondering if anybody has any insight in this scenario.

TIA

[NoMoreCards]

It is my understanding that if you filed for BK in 2005 or before that student loans were dischargable. However because you just filed in 2010, you filed under the rules in place in 2010 and therefore student loans (regardless when they were taken out) are not discharged.

In 2005 the rules were changed. What is discharged and what is not is based on the BK code, and not the date the student loans were taken out.

All the best.

[jjosephmn]

Yea,
The way I understand it is if the student loan is older than 7 years then it possibly can be discharged. My question is that the bk court said nothing about this.

[SunkShip]

The old rule was for student loans over 7 or 10 years old. The new law is all student loans are not discharged unless you have a separate hearing (full legal proceeding, court case) and can prove that you have a disability so severe that you will Never be able to pay the loan. It does not matter when your loan was taken out. The law changed in 2005,and applies to all student loans, new and old.

[tcreegan]

Student loans

Hi all,

It is my understanding that if you filed for BK in 2005 or before that student loans were dischargable

I wish this was the case.....
Before 1991, 5 yr old loans could be discharged
Before 1998, 7 yr old loans could be discharged
After 1998, it became virtually impossible to discharge a student loan

The 2005 law just added private student loans to federally backed loans and now neither are discharged.
Thanks Congress for looking after us....or wait, was that looking out for big financial outfits....hmmm

Hi jjosephmn,

No, you normally don't get a notice from the court that your student loan was not discharged.

No, old student loans are not discharged. (If you have been paying for years (like 24) and still aren't close you can file a complaint w/ US Dept of Ed for a cancellation.)

Yes, in BK court you have to file an AP (adversary proceeding)

But it is tough to get student loans discharged. Inability to pay is not a condition for discharge. Be prepared to show you have a permanent condition that will prevent you from even getting a min. wage job.

Tom in Colo

Not get any hopes up, but courts have been loosening up a little with student loans.