Legal Question in Bankruptcy in Virginia

Disputing Debt

We (my wife and I) were forced to file for at Chapter 13 Bankruptcy in November of 1997 while we lived in Virginia. We moved to North Carolina in February of 1998. We were discharged in October of 2002. Included in our filing were two college loans for my wife. They were listed to be paid at the balance due as of the filing date, and were listed to be paid first (after the IRS). I understand that these loans were non dischargeable. However, the finance companies for these two loans did not respond to the court or the Trustee with a proof of claim, even to dispute the amount listed (to claim interest etc...). We, through our attorney (in Virginia), filed a proof of claim for them in December of 2001. We did so because we had not seen them being paid in our trustee's statements. Now, after we are discharged, they are claiming interest for the four years (1998-2001) that they weren't paid off. If they had filed a proof of claim when notified by the court and the trustee, they would have been paid off in 1998. There may have been a small balance of interest which would be acceptable to us, but the four years interest they claim is not. What can we do?


Asked on 1/25/03, 8:16 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Disputing Debt

Unfortunately, you probably need to pay the interest they are claiming. You could have filed a proof of claim for the right away, but that would not have taken care of them entirely since post-petition interest on unsecured debt is not paid by the trustee. You should look to determine whether they are discharged, though - when you filed, some student loans were in fact dischagreable.

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Answered on 1/26/03, 12:18 am


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