THE BLOG
12/23/2013 04:55 pm ET Updated Feb 22, 2014

A Collection Company is Trying to Collect Student Loans in My Bankruptcy

Huffington Post Reader Question

Dear Steve,

I took out a parent plus private student loan w/ Sallie Mae. With my daughter. At the time they said in order for her to get the loan I had to be the loan holder and my daughter the cosigner. I got sick, filed bankruptcy last year in which everything was discharged.

My question is, now I have collection agencies coming after me for these loans. They are saying that student loans can not be discharged, therefore they are going after me for collection. These same collection agencies also was included in my bankruptcy. Can they still come after me for these funds?

Chiffon

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Dear Chiffon,

I'm glad to hear you are feeling better. And thank you for sending in a copy of your bankruptcy discharge statement with your question.

If you look on page two of that document you will see a section that begins with, "Debts that are Not Discharged." In that section it says "Debts for most student loans."

This is kind of a difficult subject for many. Student loan debt is both not easily discharged and easily discharged at the same time. It's the same debt but how it is approached in bankruptcy makes all the difference in the world.

For those that pursue Sallie Mae student loan debt in bankruptcy with an adversary proceeding the debt may be partially or fully discharged. Look at these examples.

This is especially true if you have a medical situation, a reduction in income, and an unlikely prognosis of increasing income. See this article for details on what the facts show us.

Some Sallie Mae student loans can be super simple to discharge in bankruptcy. Look at these loans for example.

It sounds to me as if you may have just included the debt as part of the general list of your debts and did not do anything else to pursue it. If you used a bankruptcy attorney you might want to contact them to see if they would be willing to challenge the debt. With an adversary proceeding it is not too late.

Until you do that, the collection company can continue to pursue you for the debt since it is very unlikely it was automatically discharged in your bankruptcy.

Steve

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