Need some input on a collection during open chapter 7

[snowdog]

I had my 341 hearing and all went well. Following the case in PACER and the Trustee has entered his findings all in my favor.

One item that was included in the filing was Ohio State University. Here's the story.

In Fall of 2001 I had a 3 hour credit I was taking at Ohio State. September 11th hit and I got freaked out about attending class and dropped the class thru BRUTUS (OSU's online registration system) a day before my deadline. I never paid for the class but dropped it within the timeline. OSU said I didn't drop the class in time and there was an article in the Lantern about problems with the BRUTUS system. Anyways, I argued with the school for about 6 months to no avail.

Fast forward 10 years. I get a letter in the mail about 3 months ago that unless I pay OSU 3,173.00 dollars they were going to turn it over to the Ohio Attorney General. So, I included it in my filing. It appears they want to treat this as a loan. The cost of the course was roughly 300 bucks or so in 2001. So this is about 2700.00 dollars in interest over 10 years.

I don't think this should be qualified as a loan but my attorney seems uninterested and says call them and see if they will take payment arrangements.

1.) Should I make OSU validate the debt and show a signature where I agreed to sign for a loan if that's what they claim?

2.) Any statute of limitations?

3.) Should I do nothing until the BK is discharged? See if this is included?

Thanks in advance...

[IamOld]

Forgive me but your lawyer won't/can't just include it as a debt to be discharged? Or is it a different story in OH because it's a state univ?

I ask, again please forgive me, because I have a similar situation with a large state u in my state - they claim that I didn't return library books - WHICH I DID - so there is a $3,500K bill holding a transcript hostage...it's been almost 10 years here as well...

[snowdog]

Forgive me but your lawyer won't/can't just include it as a debt to be discharged? Or is it a different story in OH because it's a state univ?

I ask, again please forgive me, because I have a similar situation with a large state u in my state - they claim that I didn't return library books - WHICH I DID - so there is a $3,500K bill holding a transcript hostage...it's been almost 10 years here as well...

It was included in the filing. They were sent a notice by the courts and have verified it with PACER. Which makes me think the best course of action is to wait it out till August 5th (end of 60 days) and see if they file an Adversary or contest it. And to see if it's discharged.

The university is so big, it's almost impossible to get to the bottom of a dispute.

[IamOld]

My apologies snowdog - didn't read your posting carefully enough!

Well, if you included it, they really shouldn't be able to contest it...no collection efforts for 10 years?!? Same here incidentally.

Depending on what my atty says, I too will include it, as there is caselaw that if it is discharged in BK, then the univ cannot hold the transcript "hostage."

If you don't mind, let us know how this goes!!!! AND BEST WISHES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[snowdog]

My apologies snowdog - didn't read your posting carefully enough!

Well, if you included it, they really shouldn't be able to contest it...no collection efforts for 10 years?!? Same here incidentally.

Depending on what my atty says, I too will include it, as there is caselaw that if it is discharged in BK, then the univ cannot hold the transcript "hostage."

If you don't mind, let us know how this goes!!!! AND BEST WISHES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yup, totally out of the blue on this. Hadn't heard from them in 8-9 years then all of a sudden a letter threating to file with the AG. So, my attorney included it in the filing. It's like one hand doesn't know what the other is doing at OSU. If the judge discharges the case and they were included..I'd have to think OSU can suck wind.. I hope. Ugh...

Best of luck to you to sir.. I'll keep updates going and would love to hear more input.

[sunshinepa]

If it doesn't get included in your BK I would definitely make them prove it. I would also look up the SOL for your state, my bet is they can't collect it. Don't think I've seen any states where it is ove 6 years. Worth looking into.

Keep us posted!

[bcohen]

What exactly do they plan to "file" with the Attorney General's office? It is a little late to claim criminal fraud (i.e. that you took the University's services and never intended to pay for them) and it's past the SOL for a civil collection unless a judgement was already granted. I would be interested to see the exact wording of this letter (obviously you should remove your name, address, and account number) because this sounds more like a form letter than something that would be applicable to your situation. And no, you should not pay anything, promise to pay anything, or otherwise acknowledge the validity of this debt. Let the bankruptcy court decide if the debt is dischargeable, or if not then what is the amount that you should have to pay.

[disconapper]

Agree with the others. Wait this one out and call their bluff....

[snowdog]

Here's the wording from the letter..

Dear XXXXXXX

You have not responded to the invoices we have sent you for the above amount due (3129.97) In accordance with Ohio Law, The Ohio State University will assign your account to the Ohio Attorney General's Office for collection June 1st 2011.

Once the account is placed with the Office of the Ohio Attorney General, collection costs will be assesssed to you, and finance charges will continue to accrue. You may be reported to credit bureaus, and your state income tax refund could be offset by the amount due to the Ohio State University before May 31st, 2011.

Then it goes on about how to pay...

No signature other than the generic University Collection Services.


I've not received anything since this letter which has not date on it until this past weekend they sent a statement of what's due. On the statement sent over the weekend it says the last payment made was 6/5/2011 which was a Sunday the day before my 341 hearing. Which is false. I've never claimed anything or paid a dime on this. Ever.

[IamOld]

State or no state, send this to your atty! Forgive I don't know if you're one of the brave who files pro se - if yes, start with sending them your BK notice...AND/OR you may just get a lawyer to take this case on contingency...at any rate, considering the massive budget cuts in OH, this isn't surprising...

Here's the wording from the letter..

Dear XXXXXXX

You have not responded to the invoices we have sent you for the above amount due (3129.97) In accordance with Ohio Law, The Ohio State University will assign your account to the Ohio Attorney General's Office for collection June 1st 2011.

Once the account is placed with the Office of the Ohio Attorney General, collection costs will be assesssed to you, and finance charges will continue to accrue. You may be reported to credit bureaus, and your state income tax refund could be offset by the amount due to the Ohio State University before May 31st, 2011.

Then it goes on about how to pay...

No signature other than the generic University Collection Services.


I've not received anything since this letter which has not date on it until this past weekend they sent a statement of what's due. On the statement sent over the weekend it says the last payment made was 6/5/2011 which was a Sunday the day before my 341 hearing. Which is false. I've never claimed anything or paid a dime on this. Ever.

[snowdog]

My lawyer (who has been fully paid now) will need a retainer to look at this further I'm getting the impression. I like my attorney and she's from a very good firm, but seems like she could care less now the 341 hearing is over. The University has already received my BK notice. So not sure sending it again is wise. Instead, kinda liking to see if it gets discharged. Then fight it if I have too.

I'm under the impression that AGs aren't in the business of doing collections. That's a civil thing to collect money?

[IamOld]

Interesting - my atty has a "side" pratice of suing for collections/stay etc violations - they get to keep of course 50% of anything the client would get plus atty's fees from the other side. Good deal I think!!!

However, if your atty won't do anything (yet), perhaps leaving it as you said makes sense. It is a large bureaucracy at the state of course.

AG's are the state's lawyers - they sue/act in civil court on behalf of the state also. In other words, they are the law firm - so to speak - for the state gov't.

Let us know how this turns out!

BEST WISHES!!!!!!!!!

My lawyer (who has been fully paid now) will need a retainer to look at this further I'm getting the impression. I like my attorney and she's from a very good firm, but seems like she could care less now the 341 hearing is over. The University has already received my BK notice. So not sure sending it again is wise. Instead, kinda liking to see if it gets discharged. Then fight it if I have too.

I'm under the impression that AGs aren't in the business of doing collections. That's a civil thing to collect money?

[snowdog]

Interesting - my atty has a "side" pratice of suing for collections/stay etc violations - they get to keep of course 50% of anything the client would get plus atty's fees from the other side. Good deal I think!!!

However, if your atty won't do anything (yet), perhaps leaving it as you said makes sense. It is a large bureaucracy at the state of course.

AG's are the state's lawyers - they sue/act in civil court on behalf of the state also. In other words, they are the law firm - so to speak - for the state gov't.

Let us know how this turns out!

BEST WISHES!!!!!!!!!

That is a good deal.

[IamOld]

That is a good deal.

AGREED!!! I had a stay violation by one lender - six instances...I know I hope not to sound greedy, but I wouldn't mind a few bucks :-)

[snowdog]

AGREED!!! I had a stay violation by one lender - six instances...I know I hope not to sound greedy, but I wouldn't mind a few bucks :-)

After what we all go thru with this crap.. don't blame ya a bit.