Student Loans - revisited!
I have another student loan question. When I signed my student loans there was a lot of stuff about if I filed for bankruptcy these loans still had to be paid - etc. When I talked to the loan company - WELLS FARGO - I asked them if my student loans were associated with federal / government. She told me no, these loans are considered private / alternative loans. Does that mean that I may have a chance to discharge them? I'm filing on my own so...I'm just wondering...
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Missy, One attorney I talked with suggested that I file on my own and include my student loans in the listing just to see if they would get discharged. He said he's seen it happen when people are filing on their own. They don't know that it's not legally dischargeable and it gets discharged. He was encouraging me to file on my own just to give that a try since I have lots of school loans. In your case, it sounds like your might even BE legally dischargeable, so definitely include them and see what happens. You have nothing to lose but the student loan debt!
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THANK YOU SO MUCH! do you have any recommendations for resources for filing on your own? Have you started the process yet? I've been considering it and this makes me want to do it even more! I am surprised that a lawyer actually said to file on your own!!! The lawyer that I had a consultation with told me that there is a possibility because my student loans are consider alternative / private loans - bank loans. Not federal.... we'll see - that would be wonderful if they could be discharged - I have three loans...they were made out to me - NOT THE SCHOOLS!! I could use them for what I deemed necessary for school...Comment
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I hate to burst the bubble here, but Mothervox, whoever that attorney is is out of his mind. It makes absolutely no difference if you file on your own or not. Also, even if a debt is non-dischargable, you still list it in your BK paperwork. Simply listing a debt in your schedules does not discharge it. The debt, first has to be a dischargable debt. The purpose of listing ALL YOUR CREDITORS is to put them on notice of the Bankruptcy. But its the bankruptcy code that determines which debts get discharged, specifically 11 U.S.C. 523, and specifically student loans are execepted from discharge under 11 U.S.C. 523(a)(8).
The only determination is whether the student loan has ANY government connection. What Wells Fargo probably means by your loans being private is that they are not Stafford Loans, but that doesn't mean your Loans don't have some Federal Connection. However, if they are truly not connected with a government program in some way (which is highly unlikely), then they are dischargable.Last edited by HHM; 03-05-2005, 12:48 PM.Comment
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Hi HHM, I wasn't planning on trying to get my student loans discharged. Mine are definitely Stafford. And I understand that under the law that they aren't dischargeable.
I don't want to give Missy false hope in regard to her student loans. But as for what the attorney said, all I can say is that he served as a BK trustee for several years, and he says he saw that happen. While it would not be in accordance with the law--it would be an irregularity to say the least--he seemed to think that mistakes happen all the time. I don't know, but I think Missy might get lucky!Comment
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Hey missy2,
So have you filed it? I'm in the same situation; I have private student loans. Could they be discharged?
Thanks,
DonComment
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I found out that my "private / alternative" loans are associated with TERI - http://www.teri.org/main.html - which means NO they cannot be discharged...
GOOD LUCKComment
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Thanks, missy2.
I hope mine would get discharged; it's a CitiAssist loan from Citibank.
-DonComment
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If you don't know for sure, you can always file a Motion in your BK to Determine the Discharability of the debt.Comment
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So...let me get this straight...if a private student loan is from a non-profit organization and not related to the government, then it is dischargeable? I just like to know for sure.
Thanks,
DonComment
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Correction:
What I meant was that...if it is NOT from a non-profit organization......Comment
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If a non-profit organization or the government is in anyway ASSOCIATED with your loan then it cannot be discharged... or so I've read...
but I'm not a LAWYER OR A PARALEGAL...I'm just a girl with no money.Comment
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Guess I am bumping this up...did anyone find out anything that has the loans through Wells Fargo?
My loans are through Concern Wells Fargo. When the student loan APR were about to jump up - I called Wells Fargo about consolidating my loans and getting the lower interest rate. I was told that the only way I could consolidate was to do another loan and the interest rate was based on my credit score. I asked why..and was told these are private loans - not gov't loans.
I see an attorney on Monday - hopefully he can shed some light on this.Comment
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