Us dept of Ed says that I owe on a defaulted loan. I don't and have sent proof the last three years. What can I do?

Asked 6 months ago - Muscle Shoals, AL

I filed chpt 13 in 2006 and part of the repayment was fora student loan. It was paid in full in January 2011, yet I am forced to spend months each year getting my tax refund returned because it has been offset by us dept of Ed. Last year I sent all requested documentation included every check that was dispersed to them and when deposited by them provided to me by my attorney. The last time info was requested and received was March 11, 2013 . Imaged sure to send it certified to have proof that I did. Yet, I receive another letter today stating I owe for a defaulted loan.

Attorney answers (4)

  1. Alan D. Walton

    Pro

    Contributor Level 19

    1

    Lawyer agrees

    Answered . Call your representative in Congress. His/her constituent service folks might be able to resolve this once and for all.

  2. Richard D. Granvold

    Pro

    Contributor Level 18

    1

    Lawyer agrees

    Answered . The cheapest way is to do what you have done in the past, but speak to as high a person as you can go up the list of managers and show you have already done this and the debt is gone. You might ask how is it in their system that it keeps coming up. On the other hand, you can pay an attorney to file a motion in bankruptcy court for violation of discharge for attorney fees and damages from their violation. I would start out as you did first..as what if you incur attorney fees and they are not either awarded to you or only partially? I recently had to sue a creditor for contacting my client post bankruptcy filing and they would NOT stop the communications until the lawsuit was filed against them in court. However, the damages to be proven is something that you need to discuss with an attorney. The actions you have taken are great..and in short, do it one more time..then if they violate it again, the court will "hit them over the head with a hammer" after seeing you have not had any other choice. Keep all your records no matter what. PS...the interest on any student loan debt during your chapter 13 was not discharged and if in fact not paid during the chapter 13 would still legally be owed; however, they may not have that in their books possibly if they write off the debt as paid in full during the ch 13 also.. Good luck . Call and talk to their supervisor this next week..and then if you want, amend your fact above and state what happened on Monday....

  3. Shaye Larkin

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The Dept. of Education is a huge bureaucracy and dealing with them is going to take some time. The other attorney is correct that you can repeat what you have already done but address all correspondence to someone further up the chain of command. Yes, at this point you can ask your attorney to file a motion to reopen your bankruptcy case in order to file a motion for contempt for violating the automatic stay, but that is going to cost money up front (the filing fee alone to reopen the case is $260) and the judge will want to see well-documented efforts to resolve the problem prior to jumping into litigation.

    The information provided herein is general information only and not legal advice. The information provided herein... more
  4. Brent J Jensen

    Contributor Level 13

    Answered . You should retain all the prior proof you have provided and all of their correspondence. Send this all in response to the latest letter and ask that they note on your account that this has already been paid and proved to them several times before. Then see your attorney about reopening the case and filing an objection to this repeated harassment.

    This is not legal advice and I am not your attorney until you retain my office. Always consult with an attorney in... more

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