QUESTION
What can I do if my Chapter 7 was discharged which includes my student loan debt but loan company says it isn’t?
Asked on Jul 20th, 2016 on Bankruptcy - Washington
More details to this question:
Loan company didn't show up to the meeting of creditors, nor did they file for an adversary proceeding. Five months later, company is saying it wasn't "really" discharged, and the debt is still on me. The court says it is.
8 ANSWERS
Student loans are not dischargeable in bankruptcy in the vast majority of cases. Hopefully that was not a main reason for your filing. It is proper to list the debt in your schedules, but that does not alter the nature of the debt. It was not necessary for them them to show up at any point. This is another illustration of why it is important to consult an experienced bankruptcy attorney before you file.
Answered on Aug 18th, 2016 at 6:21 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
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Student loan debt is not discharged in a Chapter 7.
Answered on Aug 18th, 2016 at 6:20 PM
You have made a common assumption that a plan vanilla bankruptcy will discharge your student loan debt because the lender did not appear at the 341 meeting. The reality is that in order to eliminate your student loan, you needed to file a suit within the bankruptcy to demonstrate to the bankruptcy judge that you were eligible for this benefit under what is known as the Brunner Test. Having met this criteria, you would then have obtained an additional court order authorizing the discharge of your student loan. See 11 USC sec 523 for details.
Answered on Aug 18th, 2016 at 6:19 PM
Student loans are typically not dischargeable. Creditor does not need to appear at the Creditors' Meeting, nor do they need to file an Adversary Proceeding. I would have thought your lawyer would have explained this to you. You may want to pay an experienced lawyer for one hour of their time to review your BK with you. Just an idea.
Answered on Aug 18th, 2016 at 6:19 PM
Landlord & Tenant Attorney serving Thibodaux, LA
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The Louque Law Firm, L.L.C.
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Student loans are not discharged in a bankruptcy unless the debtor files an adversary proceeding to have them declared discharged.
Answered on Aug 18th, 2016 at 6:18 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Student loans survive a Chapter 7 bankruptcy case unless you, the Debtor, file an adversary complaint asking the Judge to rule them wholly or partially discharged. To win such a complaint, you must prove, among other things, that repaying the student loans would impose an undue hardship on you. We handle student loan discharge litigation.
Answered on Aug 18th, 2016 at 6:18 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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IF it is a Federal Student Loan, as most are, YOU had to file an adversary proceeding showing extreme hardship, and on proper notice to the Student Loan company. Chances are that the Student loan is NOT discharged.
Answered on Aug 18th, 2016 at 6:18 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Most student loan debt is not dischargeable. You really need to discuss this with your attorney.
Answered on Aug 18th, 2016 at 6:17 PM