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Question
Hello, I had filed for bankruptcy back in 2006. Included in that was costs that New England Institute of Technology stated that I owed them for classes that I "attended" when I actually withdrew from school. I have a student loan that was issued to me from Nelnet that was to cover the cost of my tuition. I attended school in 2000-2001, I received court papers is 2004, and paid them $50 a month, until I filled for chapter 7 in 2006. Today I received papers stating that they are trying to garnish my wages. This account was included in my chapter 7 that was discharged and closed in November of 2006. I'm not too sure where I stand. I know that the school isn't considered a lending institution, and it's not a student loan agency, I was never provided with a truth in lending statement that all financial institutions have to provide to anyone when extending credit to them. Please help.
Wayne
I am confused about some key facts, but I'll do the best I can for now with what you have stated. You don't say if it is the actual school that is collecting on this, or if it is Nelnet.
If it is Nelnet collecting on a student loan, they are entitled to collect on the debt. Student loans, including loans that were issued to pay for tuition, are generally not dischargeable in bankruptcy.
(There are exceptions that may apply to someone who has serious disabilities and is unable to adequately support themselves if they were still required to pay their student loans - You don't say, but since you have wages you must be working, so I assume that you are in good health and self supporting. If so, that exception does not apply to you.)
If it is the actual school that is collecting for unpaid tuition, I think you have a good case that the debt was discharged and that they have to stop. If that is the case, it may be possible to go back into bankruptcy court to sue them for contempt of court if they don't stop and return the money they have take.
(If it is the school, I wonder, didn't the loan from Nelnet pay that tuition bill?)
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Answers by Expert:
Los Angeles Bankruptcy Lawyer Leon D. Bayer
Expertise
Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/
Experience
Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.
Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.
Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Education/Credentials
B.A., J.D.
Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.
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