Bankruptcy : My student loan is serviced by American Education Services which services bank-owned student loans. My loan is owned by Grandsouth Bank. The loan program is "Unsubsidized Consolidation Loan". The guarantor is ECMC ( Education Credit Management Corporation). Since this loan appears not to be a federally guaranteed loan, I am wondering if I can get this loan can be discharged in a bankruptcy proceeding? The current balance is approximately $261,000. Also, if I owe the IRS about $65K, how is that handled?
Robert’s answer:
Student loans are very rarely discharged in bankruptcy. In order for them to be discharge you will need to file bankruptcy and then file an adversarial proceeding. You must prove that the loans are an “undue hardship.”
There are some loans that may not qualify as a student loan in bankruptcy. If you attended school less than part-time or were “not a tax payer” at the time you obtained the loans, then maybe they are not even student loans. Some schools, likewise may not qualify a loan as student loan.
You should speak with a qualified bankruptcy lawyer to discuss your legal options and rights.
Can I file chapter 7 since I am now divorced??: My ex-husband and I filed chapter 13 in November 2013. I am now divorced. I want to file Chapter 7 on bills which were created mostly while still married. Is that possible. My income is limited and I work and receive only pay check and s.s. for one child. Am being constantly bothered with bill collector calls. Do I have to wait the 8 years? Thanks.
Robert’s answer:
It is hard to answer your question without more facts. For example, if you did not complete your chapter 13 plan and you did not receive a discharge then the prohibition on another discharge does not come into play.
Also, if the 2013 case is still open and ongoing you may be able to convert the case from chapter 13 to chapter 7.
If you did complete your chapter 13 plan and get a discharge then you will have to wait 6 years before you can get a discharge in chapter 7. See 11 U.S.C. s. 727 (a)(9). There are even exceptions to the the 6 year wait, such as you paid 100% of your unsecured claims in your chapter 13 case or you paid 70% of your unsecured claims and the case was filed in good faith.
Your lawyer in your original case will likely be the best resource to help determine when you can refile.
Can I be sued by a debt collector?:
My father lend $50,000 to his friend in 2017 and the repayment date is 2019 but the debtor never pay back. Last month we ask a lawyer to send the friend a letter and he still did not pay back. However, I reach out to a debt collector and send a photo of the debt acknowledgement ( between my father and the debtor) to the debt collector. The debt collector lie to me and said i need to sign a document for him so he can help to sale out the debt. on the agreement the debt collector send to me said his client is my father and they represent him to ask the debtor to pay the money. But I am the one who sign my name on the agreement not my father. However, two days later the debt collector did not sale the debt but told me, they would like to collect the debt.
But at the same time debtor want to pay my father the money, so i ask the debt collector to stop to do anything, but he threaten me that I have to pay him 20,000 for him to back out. if not he will reach out to debtor and ask the debtor not to pay us. Also, he will sue me and my father, but father did not sign or agree with the debt collector service nor the give me the right to sign on his behalf. Can we be sued?
Robert’s answer:
I am not sure I fully understand your question. Debt collections agencies are highly regulated both on the federal and state level. Your case may be beyond what a debt collection agency may be able to handle.
A lawyer may be able to better assist you with your situation.
Perhaps if you win the litigation and have a judgment and are still unable to collect you may want to then seek the assistance of the debt collection agency.