Expert: Mark J. Markus- California Bankruptcy Attorney - 1/9/2009

Question
QUESTION: I have a question me and my husband now divorced and I am remarried filed for bancruptcy in 1989 we had put in my student loans we were told everything was accepted anyway. I thought the school loans were forgiven now 20 years later they contacted me and said student loans are not accepted through bancruptcy and I have to pay all the interest from 20 years ago. I don't have a job and my husband now was not married to me when I had the debt and he is in the military. Will they garnish our wages or do I have a case. Thank you Tina

ANSWER: If the debt was not discharged in your bankruptcy case, then they can take whatever collection actions are allowed under your State's laws, including wage garnishment.

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QUESTION: How can you find out if it has been discharged. It has been along time ago when I filed for bancruptcy. thank you tina

Answer
You would have to hire an attorney to analyze the law as it stood in 1989 as relates to student loans, and then see if your loans met the specific criteria for discharge.

I believe, but am not certain, that in 1989 the requirement for discharging student loans was that the loans must have been in repayment status, EXCLUSIVE of any forebearances or deferments, for at least 5 full years prior to the filing of your case.  If there were any forebearances or deferments during that 5 year period, that would extend the 5 years by the length of the deferment or forebearance (which could have been granted even if you didn't request them, simply by not making payments).   Thus, it would require pulling transcripts of your entire payment history on the loans.   

The only other way the loans would have been discharge would be if you brought, and successfully litigated at trial, an undue hardship case on the student loans.  It doesn't sound from the facts you presented like that occurred.