Legal Question in Bankruptcy in Pennsylvania

20 year old studen loan

I took out a studen loan for college in 1983. I am in the process of claiming bankruptcy. Just today I received a letter from a collection agency wanting to make arrangements for payment. Honestly, I had forgotten about that loan. I know it sounds shameful. When I got the copies of my credit report months ago to prepare the bankruptcy paperwork; it was not on there. In fact I had 2 credit reports to reference. And then all of a sudden this letter comes. My question is this, ''can I include this student loan as part of my bankruptcy?''. I've read that there is a 7 year rule: The first payment being due more than 7 years prior to filing for bankruptcy. I'm sure that it qualifies as I have not had any contact with the original lender or agencies representing them in many, many years. Especially given that the loan is more than 19 years old. If you could clarify this matter for me I would be appreciate it very much.


Asked on 11/04/02, 9:56 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: 20 year old studen loan

Unfortunately, the laws were amended in 1998 to prohibit a discharge of any government guaranteed student loan. Of course, if the loan was from a bank, and was simply for the purpose of going to school, the debt may be dischargeable. The question is, was it guaranteed by the government?

Assuming the debt is not dischargeable, you have another issue. Pennsylvania case law may allow you to avoid this debt based upon the doctrine of laches. If you have not heard from this creditor for 20 years, they may be precluded from pursuing it now.

I am more than happy to discuss this further on free initial basis.

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Answered on 11/07/02, 10:42 am


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