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  1. #1
    Join Date
    Apr 2014
    Posts
    1

    Default Getting Hardship Discharges or Bankruptcy Discharge of Student Loans

    My question involves collection proceedings in the State of: RI

    A year and 1/2 ago I filed Chapter 7 bankruptcy. I knew school loans did not count even though they are listed.

    A year ago I was involved in a bad accident. I am unable to work. Of course SSDI denied me at first, so I have an appeal in action.

    I had three companies for Student loans:

    AES: Under $1000. I was able to pay that off with the little bit of money I received from the accident.

    Nelnet: A government loan. These people are so nice. They have a hardship dismissal. They know I am waiting to hear from SSDI so they had my
    PCP fill out a paper. I am dismissed from owing the money.

    Keybank: A private loan. Apparently when I filed the bankruptcy the loan automatically goes into default. After the accident I called and they said they do not have
    a hardship program or anything of the sort. I paid $30 a month as long as I could. Now I do not have it.
    I called the lawyer I used for the Bankruptcy because I would like my bankruptcy amended. Of course I would have to borrow the money for that.
    This lawyer does not seem interested in doing this - I was wondering why?

    I have a few disabilities, unable to work and I have a PCP letter. Also this loan has been listed as discharged which does not excuse it. Why do some
    of the answers on this post say that if a private school is discharged on a bankruptcy they can't come after you?

    It makes no sense that Nelnet would forgive me and Keybank cannot offer anything to help.

    Keybank has not come after me yet. Although I have nothing, I would like it officially excused. What can I do? Thank you for helping!

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Getting Hardship Discharges or Bankruptcy Discharge of Student Loans

    The attorney is probably thinking along the lines of "It costs money, it might not work anyway, and I'd rather not do the work if I'm not going to be paid".

    You really need to ask your attorney though, what was and wasn't discharged in the bk. Where is it listed as discharged?

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Getting Hardship Discharges or Bankruptcy Discharge of Student Loans

    The lawyer likely sees it as a lot of work for not much return. You apparently expect to receive or have received hardship discharges for the AES and Nelnet loans. You have not told us how much you owe to Keybank, but your lawyer may be comparing that amount to the $$$ it will cost to retain him to petition to reopen your case and, should the court grant you permission, to go through contested proceedings on the difficult task of trying to discharge student loans. If you want to know what your lawyer is thinking, the only way to find out is to ask your lawyer.

    I can't speak for threads or posts when you choose not to provide links. If in fact a debt is discharged, the answer would be that the debt was discharged. If you are asking about non-dischargeability, some (not all) private student loans do not meet the provisions of the federal statute that renders federally guaranteed student loans non-dischargeable.

  4. #4
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Getting Hardship Discharges or Bankruptcy Discharge of Student Loans

    Yeap. It's harder to discharge federal student loans than it is to discharge taxes, and that's no walk in the park either.

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