Private Student Loan & Bankruptcy

[Desiflavour101]

Need advice/suggestions:

Long story short, after my bankruptcy discharged my private student went to CHASE's collection department from their outsourced CA.

It is still with them and I am on the payment plan with them but finding it impossible to pay them $450 a month.

I tried talking to them to renegotiate the payment plan but no dice.  

Can they still take me to court and file judgment despite the bankruptcy?

The loan still shows up on my report and it is a drag on my score.

[gdale6]

If the loan is guaranteed in any way by the federal govt then IMO the debt was not discharged. You will need to check out the higher education act which controls student loans to see if it could be discharged, I would also consult my BK lawyer for clarification.

[egold1234]

I'm in the same boat with Sallie Mae.

Private loans are NOT discharged unles you do some additional leg work. My attorney told me not to bother as it rarely happens. I've been getting hounded by Sallie Mae since my discharge. They offered me payments of $500 a month OR a one time pyment of $8000. They don't care that I've been our of work for 2 years or that I'e been sick.

They WILL file for a judgement before the SOL is up (yes there is a SOL on private loans) and they will garnish wages and make your life hell.

Although, I did get my federal loans to $5 a month..that helps!

Good luck!

[DE2TX]

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@egold1234 wrote:

I'm in the same boat with Sallie Mae.

Private loans are NOT discharged unles you do some additional leg work. My attorney told me not to bother as it rarely happens. I've been getting hounded by Sallie Mae since my discharge. They offered me payments of $500 a month OR a one time pyment of $8000. They don't care that I've been our of work for 2 years or that I'e been sick.

They WILL file for a judgement before the SOL is up (yes there is a SOL on private loans) and they will garnish wages and make your life hell.

Although, I did get my federal loans to $5 a month..that helps!

Good luck!

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Not always. I had private student loan with Chase for $8K and they barely even tried to collect. I think the SOL expired at the end of last year, but they 1099'ed me well before that.

[DE2TX]

OP, yes they can. Will they? Who knows.

[Desiflavour101]

What is SOL?

Did they call you or just give you 1099?

They told me last year either pay or get 1099. I preferred to deal with IRS than them so I let it go until they contacted me in Dec.

Now I'm making $450 monthly payment that is nowhere end in sight. 

[DE2TX]

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@Desiflavour101 wrote:

What is SOL?

Did they call you or just give you 1099?

They told me last year either pay or get 1099. I preferred to deal with IRS than them so I let it go until they contacted me in Dec.

Now I'm making $450 monthly payment that is nowhere end in sight. 

---

Statute of Limitations. Student loans should fall under promissory notes I believe, but I never worried about that since I'm in TX and the SOL is 4 years across the board here.

http://www.creditinfocenter.com/rebuild/statutelimitations.shtml

They might have called, but they never spoke with me. One day I opened the mail and I found a 1099. I was fully prepared for them to sue me when I got the 1099 and I thought they were sending an intent to sue letter, but that never happened. I vaguely remember hearing that Chase was either not suing or was barred from suing, but that might have just been for the CC division or another company altogether. Either way my original plan was to take the case to arbitration and make pursuing me very expensive. I wasn't planning to win, but unless they were out for blood I thought I would be able to get them to settle for $1-$2K.

Your case is a bit different though because you are paying them after they started collection efforts and now it is easier for them to prove that the debt is valid in case they ever take you to court. In my case I never sent them a payment.

They aren't going to take less than what they are getting now unless your account becomes delinquent, but that wil probably hurt your credit more and they would expect payment in full if they offer you a settlement.

Can you really not afford the $450? $450 is a lot, but if you are on an accelerated payment plan (12 months vs 120 months) it might be worth it to just stick it out.

[DE2TX]

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@Desiflavour101 wrote:

What is SOL?

Did they call you or just give you 1099?

They told me last year either pay or get 1099. I preferred to deal with IRS than them so I let it go until they contacted me in Dec.

Now I'm making $450 monthly payment that is nowhere end in sight. 

---

Statute of Limitations. Student loans should fall under promissory notes I believe, but I never worried about that since I'm in TX and the SOL is 4 years across the board here.

http://www.creditinfocenter.com/rebuild/statutelimitations.shtml

They might have called, but they never spoke with me. One day I opened the mail and I found a 1099. I was fully prepared for them to sue me when I got the 1099 and I thought they were sending an intent to sue letter, but that never happened. I vaguely remember hearing that Chase was either not suing or was barred from suing, but that might have just been for the CC division or another company altogether. Either way my original plan was to take the case to arbitration and make pursuing me very expensive. I wasn't planning to win, but unless they were out for blood I thought I would be able to get them to settle for $1-$2K.

Your case is a bit different though because you are paying them after they started collection efforts and now it is easier for them to prove that the debt is valid in case they ever take you to court. In my case I never sent them a payment.

They aren't going to take less than what they are getting now unless your account becomes delinquent, but that wil probably hurt your credit more.

[DE2TX]

---

@Desiflavour101 wrote:

What is SOL?

Did they call you or just give you 1099?

They told me last year either pay or get 1099. I preferred to deal with IRS than them so I let it go until they contacted me in Dec.

Now I'm making $450 monthly payment that is nowhere end in sight. 

---

Statute of Limitations. Student loans should fall under promissory notes I believe, but I never worried about that since I'm in TX and the SOL is 4 years across the board here.

http://www.creditinfocenter.com/rebuild/statutelimitations.shtml

They might have called, but they never spoke with me. One day I opened the mail and I found a 1099. I was fully prepared for them to sue me when I got the 1099 and I thought they were sending an intent to sue letter, but that never happened. I vaguely remember hearing that Chase was either not suing or was barred from suing, but that might have just been for the CC division or another company altogether. Either way my original plan was to take the case to arbitration and make pursuing me very expensive. I wasn't planning to win, but unless they were out for blood I thought I would be able to get them to settle for $1-$2K.

Your case is a bit different though because you are paying them after they started collection efforts and now it is easier for them to prove that the debt is valid in case they ever take you to court. In my case I never sent them a payment.

They aren't going to take less than what they are getting now unless your account becomes delinquent, but that wil probably hurt your credit more.

[DE2TX]

My reply to you keeps getting lost somehow.