University attempting to collect after Ch 7?

[jayson1]

I understand that student loans don't usually get discharged in Chapter 7, this isn't about a loan. Before my Ch 7 I took classes and dropped out of a couple but still owed the tuition. The school called me demanding repayment and stated that student loans are not included in BK which I stated it wasn't a loan and I never signed any paperwork for a loan. They asked me if I wanted to setup a payment plan and want me to sign forms for this tuition repayment. I declined to do this because it would seem that I would be actually agreeing to a loan on some thing that was included in my BK. So what should I do at this point? They listed it on my credit report and I really want to get this removed. My BK was filed 2 years ago and they are just starting to come and ask for this now. Would a certified letter to the school and credit agencies do the trick or do I need to go and get a lawyer involved?

[dumpinmydebt]

This is really a tricky situation because at my school, if I signed up for classes and dropped, I would still get the student loan. They say it is my responsibility to inform my student loan lender that I dropped, not theirs.

I would ask them to provide more information, on paper (not phone), about this debt.

[free2breathe]

Look up In re: Kevin Renshaw, Cazenovia College v. Kevin Renshaw and In re: David W. Regner, The College of St. Rose v. David W. Regner.

There might be something in these cases to help you argue your case with the university's business office.

[jayson1]

This is really a tricky situation because at my school, if I signed up for classes and dropped, I would still get the student loan. They say it is my responsibility to inform my student loan lender that I dropped, not theirs.

I would ask them to provide more information, on paper (not phone), about this debt.

I understand what you mean, but the debt is actually coming from the school and not a lender. Some one in the tuition department is calling me asking me to sign paperwork and set up payment plans with them, which basically would be agreeing to a loan. They are saying I owe them the money for dropping the classes. The crazy thing is after I explained that it was included in the BK because it wasn't a student loan the person I spoke with got angry and hung up the phone basically stating they don't care.

[dumpinmydebt]

I understand what you mean, but the debt is actually coming from the school and not a lender. Some one in the tuition department is calling me asking me to sign paperwork and set up payment plans with them, which basically would be agreeing to a loan. They are saying I owe them the money for dropping the classes. The crazy thing is after I explained that it was included in the BK because it wasn't a student loan the person I spoke with got angry and hung up the phone basically stating they don't care.

I'd still have them send you a letter stating information that way you have it for your personal records. I would then reply to that letter letting them know this debt was discharged in your bankruptcy and any further collections will be seen as a violation and you will take action to sue them for it, certified mail with a return receipt.

I don't talk to my creditors on the phone because then you play the I said/they said game. I prefer to stay in contact where I have a paper trail.

[olivies]

http://ftp.resource.org/courts.gov/c...5019.1999.html

The analysis of any statute must begin, of course, with its plain language, at least where its language is plain. See Patterson v. Shumate, 504 U.S. 753, 757-59 (1992); Mansell v. Mansell, 490 U.S. 581, 588 (1989). Because Congress did not define the term "loan" for § 523(a)(8), we must interpret it according to its settled meaning under the common law. See NLRB v. Amax Coal Co., 453 U.S. 322, 329 (1981); see also In re Merchant, 958 F.2d 738, 740-41 (6th Cir. 1992). The classic definition of a loan was articulated by our Court scores of years ago in In re Grand Union Co., 219 F. 353, 356 (2d Cir. 1914).1 We paraphrase it as follows: To constitute a loan there must be (i) a contract, whereby (ii) one party transfers a defined quantity of money, goods, or services, to another, and (iii) the other party agrees to pay for the sum or items transferred at a later date. This definition implies that the contract to transfer items in return for payment later must be reached prior to or contemporaneous with the transfer. Where such is the intent of the parties, the transaction will be considered a loan regardless of its form. See id. Absent such an agreement, failure to pay a bill when due does not create a loan.

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The transactions in these cases do not meet the Grand Union standard. Neither college entered into an agreement to extend credit to its student or to permit the student to attend classes in return for a payment of tuition at a future date. Rather, both Renshaw and Regner unilaterally decided not to pay tuition when it came due. The colleges, which then could have forbidden them to attend classes, chose not to do so. Nor did the colleges come to any agreement with Renshaw or Regner about future class attendance or an extension of credit.

[tcreegan]

jayson, you da' man for not signing anything!! Good job.

I think dumpinmydebt has the best path, send a letter and a copy of the discharge papers, politely but firmly telling them the debt occurred before the BK filing date, collection on the debt is a violation of the discharge injunction, and all further communications will be recorded for evidence.

...from what you have posted, my guess is we are talking about a small, for-profit outfit....close?

Tom in Colo

[researchnerd]

I don't know about yours, but my BK discharge document explicitly prohibits collection on debts that were included in BK:

The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor by mail, phone, or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor.

If your tuition debt was included in your BK, they may be in big trouble. I agree with dumpinmydebt, letters are the way to go. You might quote specifics from your discharge statement just for emphasis.