Stop Debt Collector Harassment You have the power to stop student loan harassment. Simply demand that the student loan collection agency stop contacting you in writing. I suggest that you write a letter and send it via fax / email and postal mail certified, with a return receipt clearly stating that you dispute the student loan debt and request that all communication stop immediately. Below is a template that works well: How to Deal With Collection Agencies http://thephiladelphiabankruptcyattorney.com/debt-collector/how-to-deal-with-collection-agencies/ If they continue to contact you, the consumer law allows you to sue them up to $1,000 for for the violation of
On May 13, 2013, Monique Evette Jones sought a discharge of her student loan obligations in her Chapter 7 bankruptcy case. Chief Judge Eric L. Frank granted a discharge of approximately $29,760.00 in student loans. The Brunner Test Section 523(a)(8) provides that student loans are dischargeable if they impose an undue hardship on the debtor and the debtor’s dependents.” 11 U.S.C. § 523(a)(8). A debtor seeking to discharge her student loans must prove that: (1) based on current income and expenses, the debtor cannot maintain a “minimal” standard of living for herself or her dependents if forced to repay the
The bankruptcy case terminates your legal liability on the secured debt as in a car loan or house loan but it does not remove the lien that was posted against the property when the loan was given. This is a difficult legal concept for many people to understand. A bankruptcy wipes out unsecured debt, any debt that is not a loan against a tangible asset, as in a car or house. A bankruptcy discharge bars future enforcement of the debtor’s pre-petition, personal obligations on the debtor’s property; liens however generally survive bankruptcy and can be enforced after the bankruptcy ends.