QUESTION
How do I prove the loan was discharged in bankruptcy?
Asked on Aug 03rd, 2015 on Bankruptcy - Michigan
More details to this question:
My over 20 year old student loan was filed with my bankruptcy- and everything I see reported now shows zero balance - that the loan was discharged. But a collection agency a year later is trying to collect and threatening garnishment.
8 ANSWERS
Usually student loans can not be discharged in bankruptcy even if you listed it.
Answered on Aug 24th, 2015 at 6:22 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Consult your BR lawyer, and if you did not have one before, you should definitely consult one now. Since 1991, the only way to discharge student loans in BR has been through an Adversary Proceeding in which you convince the Judge that you cannot support yourself and your dependents and also make even small periodic payments on the student loan obligation.
Answered on Aug 24th, 2015 at 6:18 PM
Student loans are not discharged in any bankruptcy unless there is a special and separate court order saying so. Credit reports are not reliable indicators of your legal obligation to pay debts. You have been misinformed.
Answered on Aug 06th, 2015 at 10:13 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The definitive information will be found in the case file and discharge. See you bankruptcy attorney or hire one for a firm opinion. If it was discharged the collection attempts are unlawful.
Answered on Aug 06th, 2015 at 4:09 AM
At least since 2005, student loans are presumed not dischargeable unless you prove that paying them would create an undue hardship. Proving undue hardship requires a separate adversary proceeding in your bankruptcy. If the collector insists your loan was not discharged in your bankruptcy, you would have to re-open your bankruptcy case and litigate the matter. That could be expensive. You might be better off trying to settle.
Answered on Aug 06th, 2015 at 4:07 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Student loans are not usually discharged in bankruptcy unless you had a hearing the the judge ruled that your student loan was discharged. You said it was a 20 year old loan, that means you haven't paid it or gotten a deferment for 20 years then collecting would be barred by the statute of limitations.
Answered on Aug 05th, 2015 at 6:50 PM
Student loans cannot be discharged in BK absent extraordinary circumstances. It's still around.
Answered on Aug 05th, 2015 at 6:50 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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A credit report does not establish whether your loan was discharged. A Judgment against the student loan agency in your bankruptcy case from an adversary lawsuit filed in the case does.
Answered on Aug 05th, 2015 at 6:49 PM