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Which educational loans can survive bankruptcy?

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    #1

    Which educational loans can survive bankruptcy?

    Please reply if you have info or suggestions, originally posted under "Zombie Debt Collectors..."

    http://www.bankruptcyforum.com/showp...47&postcount=6

    Originally posted by quest42
    As I understand it, my niece took out a tuition loan in the 1980's. She began some courses, but the school went out of business before the term ended. She got no credit for the incomplete courses. She did not pay on the loan.

    She declared bankruptcy in California years later.

    Recently, she's had dunning letters from a creditor. They say they purchased that old loan from the school. They claim that educational loans cannot be discharged in bankruptcy, survive statutes of limitations, and claim that she now owes over $10,000 in principal, interest, and late fees.

    Is this legally true? What can she do? I can get more details, if it would help to find a solution.
    I'm in N. California ... Thanks for your replies!
    10/11/05: bought www.form7.com software
    10/14/05: Filed Ch 7 BK Petition pro se skeleton
    10/27/05: Filed all schedules, etc.
    11/17/05: 341 meeting (done!)
    01/16/06: Last day to file objections
    01/18/06: Discharged, closed

    Bankruptcy LINKS
    Tags: None
    #2
    I believe that actually may be true......
    Filed 07/14/2006
    341 Meeting 08/11/2006
    Deadline to Object 10/10/2006
    Discharged 10/17/2006

    Comment

      #3
      Since this looks like a private loan {school went out of buisness} she may well have an SOL defense and, ifshe filed bk prior to 1998 they may have been discharged in bk.
      I'd suggest she speak with her bk lawyer.

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      Comment

        #4
        Originally posted by keepmine
        Since this looks like a private loan {school went out of buisness} she may well have an SOL defense and, ifshe filed bk prior to 1998 they may have been discharged in bk.
        I'd suggest she speak with her bk lawyer.

        http://www.yourlawyer.com/articles/read/11267
        Yes, your niece is indeed one of the very lucky ones. Since her school went out of business before she completed her classes, that's one of the few "byes" in the student loan bankruptcy game. Otherwise there is no statute of limitations on student loans.

        As KeepMine suggests, it's lawyer time. If your niece has no connection to her prior bk lawyer now, advise her to schedule a free half-hour-to-hour session with a good bankruptcy lawyer in her area and see what he or she has to say. Hope everything works out for her!
        I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

        06/01/06 - Filed Ch 13
        06/28/06 - 341 Meeting
        07/18/06 - Confirmation Hearing - not confirmed, 3 objections
        10/05/06 - Hearing to resolve 2 trustee objections
        01/24/07 - Judge dismisses mortgage company objection
        09/27/07 - Confirmed at last!
        06/10/11 - Trustee confirms all payments made
        08/10/11 - DISCHARGED !
        10/02/11 - CASE CLOSED
        Countdown: 60 months paid, 0 months to go

        Comment

          #5
          In reading some case law on this, when the school went out of business, the loans got discharged.

          However, everyone's case is different so make sure you consult a lawyer.
          *** THIS IS NOT LEGAL ADVICE--ONLY A LAWYER CAN PROVIDE THAT. ***

          My posts represent hours of research on and off the web, these forums, my experience, and my opinions.

          Comment

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