Legal Question in Bankruptcy in California

Bankruptcy and Student Loans

My husband and I filed for bankruptcy in 1998. At the time we were told by

our attorney-preparer that his student loan from 1989 would be discharged

in the bankruptcy. We are being dunned by the federal education dept. now

for the balance, which is over $11,000., due to interest and penalties on an

original loan of around $3,000. At the time half his income was being

garnished for child support. A letter from the preparer indicated that the

only non-dischargable debts would be child-support and taxes incurred

within the last three years of filing. Our understanding is that the loan was

discharged. Are we wrong?


Asked on 3/10/06, 1:07 am

3 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Bankruptcy and Student Loans

You are probably wrong. If your bankruptcy case was filed after October 7, 1998, then the only way the student loan debt could be discharged is if you filed and litigated (and won) an undue hardship action against the student loan agencies. If it was filed before October 7, 1998, it would only have been dischargeable if the loan had been in repayment status for at least 7 years prior to filing (exclusive of any periods of deferment or forebearance).

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Answered on 3/10/06, 1:13 am
Robert F. Cohen Law Office of Robert F. Cohen

Re: Bankruptcy and Student Loans

You should contact the attorney-preparer to ask him/her that question. The bankruptcy law was changed around that time, I think, making discharge of student loans extremely difficult.

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Answered on 3/10/06, 1:14 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: Bankruptcy and Student Loans

As correctly noted by Mr. Markus, there is a very good chance that you did NOT receive a discharge of the student loan debt. You should contact a local bankruptcy attorney to review the file and render a more precise opinion.

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Answered on 3/10/06, 8:55 am


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