Legal Question in Credit and Debt Law in California

Loan for school which closed without warning

I had taken out a loan for school which while i was attending closed without warning to students and staff. the owner failed to inform the state and govt and faulty,students that he was going to close the school. I got advice from lawyers not to pay my loan. The attorney general and district attorney are in lawsuit against the school. Now the loan is past collection and about to take me to court and i am not sure what to do. They have not sent me a letter or anything in the mail but told me on the phone that they are. The collection agency failed to inform me that i can settle out of court for half the debt if i pay the full amount at once. Basicaly i am not sure what to do about the school loan/ maybe lawsuit against me.


Asked on 8/07/07, 12:59 pm

1 Answer from Attorneys
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Loan for school which closed without warning

From your description of the situation, you would be eligible to have the loan discharged because the school closed. Also, it sounds as though there may be a collection agency violation as well. Feel free to contact me to discuss, I have experience in this area.

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Answered on 8/07/07, 1:16 pm


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