Hello...I have a question regarding Bankruptcy law, specifically in regard to Student Loans.
I filed for Chapter 7 Bankruptcy in 2014, and the Bankruptcy was approved by the courts in February of 2015. At the time of filing, I was advised by my Attorney that Student Loans would not be discharged as a part of the Bankruptcy filing. I was advised that I would need to begin making repayment on these accounts 12 months after the Bankruptcy was approved by the court. That said, I was told to list all debt as shown on my credit report. This included 4 accounts that I had with ECMC for Student Loan debt accumulated through the years. In February 2016, after not receiving any notice from ECMC, I reviewed my credit report to find that my debt with ECMC was discharged as a part of my Chapter 7 Bankruptcy filing. Between the dates of 02/2016-07/2016, I received no notice of debt. Furthermore, there have been no derogatory reports against my credit in regards to Student Loans. However, in 07/2016, I received an EMail to contact ECMC to make payment arrangements on my Student Loans that are now in default. When I contacted ECMC, I was advised that I had 4 open accounts with ECMC at the time of my Bankruptcy filing. ECMC states that 2 of the open accounts were discharged as a part of the Bankruptcy filing, and 2 of the open accounts remain open. Naturally, this has created some concern on my part. It is my understanding that each creditor had the opportunity to contest the Bankruptcy filing in my meeting with creditors. During my meeting with creditors, there were no creditors present to contest any of the debt listed. Furthermore, my final judgment shows that the Bankruptcy was approved as filed without contest from any of the creditors listed. I have gone back to review my Bankruptcy filing, and it shows that all 4 ECMC debts were listed. My question is, can a creditor ignore the Bankruptcy order by not discharging debt as listed when the discharge of debt was not contested? What are my options at this point?
1 Answer from Attorneys
You were already advised by your attorney that the student loans would not be discharged. Your attorney was correct. The fact that you hoped he was wrong does not give you any argument to contest the creditor's actions. Your credit report is not a legal document. It does not establish what your rights to discharge are.
Student loans are not discharged in bankruptcy under almost all circumstances. The creditor is not required to challenge anything. The debt simply survives. This is not ignoring the bankruptcy order. You should actually read your discharge order. By its terms, it only applies to dischargeable debts.
If all of the debts listed were student loans, then it is not clear why ECMC believes that two of them are gone. However, I don't think it is in your interest to argue with them on this point. They might realize that they made a mistake and all of the debts are active.
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