Legal Question in Bankruptcy in Virginia
I filed bankruptcy Ch 7 in 1995. Included in the petition were student loans. All garnishments stopped. Recently I began receiving collection letters. I sent copies of Bankruptcy paperwork to Dept. of Education. I am now being told student loans were not discharged. How can this be?
On top of that the school was sued by the State of VA for not being accredited and the degree was useless.
1 Answer from Attorneys
In 1984 Congress enacted the Bankruptcy Amendments and Federal Judgeship
Act which classified all private student loans from non-profit institutions
(not just colleges and universities) as exceptions to discharge, and therefore if your student loans fit into this category, then apparently they would not have been discharged in your Chapter 7 bankruptcy filing 11 years later in 1995.
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