TERI Defaulted Loans

[sunbrite]

My question involves collection proceedings in the State of: New Jersey.

Please let me know how the recent TERI bankruptcy will affect my defaulted student loans with them. TERI subsequently issued a civil judgement issued against me that was sent to my parents' home. At the time, I was living on the other side of the country and by the time I received notice of the pending litigation, the judgement had already been rendered against me. I was not able to travel and defend myself in court. Right before I had this judgement rendered against me, one of their collection attorneys contacted me and I requested a re-payment plan. He demanded the payment in full- which was close to 8K. I had just found an entry-level position at the time and could not pay that amount, but he would not budge. Shortly thereafter the civil judgement was issued.

I also have a federal government loan that's under the William Ford Consolidation program that I had attempted to install a re-payment plan for. My understanding is that any debt you incur before marriage is yours and your spouse is not liable. However, I was required (and subsequently complied) to complete "income-contingent" forms for both myself and my spouse before I could be enrolled in the repayment plan under the Ford program. Is this allowed? Again, my understanding is that they cannot go after my spouse's assets.

Thank you for any feedback.

[seniorjudge]

You can't get rid of student loans in bankruptcy.

[Justmy2cents]

Dude now is the time to file against TERI in BK court. DONT ever listen to what these vicious collectors have to say. Your actions may have given them new life in a dead action. But anyway read this:

My understanding is that the TERI's Chapter 11 filing invokes the automatic stay but only as it involves creditors. Debtors of a debtor should be accorded relief. If not, then claim that your case cannot continue while TERI remains in Chapter 11. This can only be done if you file an Adversary Proceeding within a BK case against them. If you do that then neither TERI or the US DOE can do anything to you until the TERI case is closed. That could be 1 to 3 years from now.

You seem to be involved with both of these entities before filing a BK case.
You have to outsmart the greedy a-holes who are trying to turn you into a debt slave. File BK and then file an Adversary Proceeding against both TERI and the US DOE. Stop answering their calls and become proactive. Dont talk to them and sue them! It can work! Dont listen to seniorjudge, he is just part of the establishment who seeks to make you a debt slave forever!!! Fight back!!!

[Rosalynn200]

This is from a recent First Marblehead Corp. (ticker=FMD) 10-Q regarding the TERI bankrupty:

If the creditors committee or any other party were successful in challenging the trusts' security interests in the post-petition transfers to the pledged accounts or other collateral, including recoveries, the amount of pledged collateral available exclusively to a particular securitization trust to satisfy TERI's guaranty obligations to that trust would decrease materially. As a result, the trust's unsecured claims against TERI would increase proportionately. For example, recoveries from defaulted student loans, which have historically been used to replenish a particular trust's pledged account, would instead become an asset of TERI's bankruptcy estate and available to satisfy administrative claims of TERI's bankruptcy estate and other holders of claims in accordance with the priorities established by the Bankruptcy Code. In addition, TERI may seek to reject its guaranty obligations entirely in the context of the TERI Reorganization. Any of these developments would decrease materially our service receivables and could further harm our ability to structure securitizations in the future.

Go to: http://biz.yahoo.com/e/081110/fmd10-q.html

[Justmy2cents]

Just so you know, TERI's Chapter 11 BK case does NOT prevent you from suing them in an Adversary Proceeding BK case seeking to discharge these loans. By Order dated June 12, 2008, the BK court in the Eastern District of Mass. ruled that all SL litigation that does not involve monetary claims (such as the seeking of a discharge of debt) does NOT violate the automatic stay. Therefore anyone can pursue the discharge of their TERI loan debts. And you should do so while TERI is in BK and is weaker to respond. Remember kick em when they're down. They would do it to you if they could. Do onto others BEFORE they do onto you. I think thats in the Bible. SL law is not fair so there is no reason for anyone to act fairly. Take every advantage you can.