Is college debt dischargeable?

[allwipedout]

Hello, I am hoping someone will be able to help me figure out an issue I am having. I have been reading quite a bit trying to figure out my options without having to go through an attorney.

Here is a quick overview
1994- Attended 1 term of an Oregon public college
1997- Chapter 7 'no asset' bankruptcy
2008- Collection agency attempting to collect a debt for the college (approx $4800).

While my bankruptcy did not list the college as a creditor (I did not know of the debt at the time) the Ninth Circuit does not require a creditor to be listed in a 'no asset' bankruptcy to be discharged (if the debt would have been discharged had the creditor been listed).

I did have two federal loans, but they have both been paid off, and I have a letter giving evidence of satisfaction and that I am clear apply for future Title IV loans.

I looked up the following information and from this bit, it sounds like the debt should be dischargeable, but perhaps I am just being hopeful?
My biggest confusion is whether regular debt to a public college is treated as an actual non-dischargeable loan. I have read some articles/posts saying yes and no.

(www.ous.edu/cont-div/fasom/sec6/sec0625.pdf)
OSBHE FINANCIAL ADMINISTRATION STANDARD OPERATING MANUAL
Section 06.25 COLLECTIONS AND WRITE-OFFS (Last Revised 03/93)
C LEGAL COLLECTION EFFORTS AND BANKRUPTCY

"... Institutions must comply with federal regulations concerning bankrupt debtors. No collection efforts may be made while a bankruptcy case is pending. Institutions should file proofs-of-claim on all Chapter 11 and 13 cases, and those Chapter 7 cases with assets. Cases requiring motions, such as for relief of stay, objections to plans, dismissal of case, etc., must be forwarded to the Credit and Bankruptcy Section of the Department of Justice. Institutions should promptly write off receivables discharged in bankruptcy and immediately resume collection efforts on receivables not discharged."​

Also, I recently looked at my Equifax credit report and found this listing, by a different company:

RC Services Inc
Loan Type: Open Account
Remark: >placed for collection<
Date placed for cllection: [10/2002]
Estimated date that this ietm will be removed: 08/2009
Balance: $2,352
Date Updated: 12/2002
Original Balance: $2,299
Original Creditor: (***college***)
Past Due: $0
Pay Status: >Collection Account<
Account Type: Open Account
Responsibility: Individual Account​

I have two questions I would love to find some answers to:

1) What does the information in the credit report listing mean?

2) Is this college tuition debt dischargeable, and in effect cleared through my bankruptcy?

I greatly appreciate your time for reading through this post, and for any help you can give!

 

[bigun]

Hang on to that credit report. Looks like the derogatory inf will be removed in Aug.
As to your other question. In 1998, forner Presiden Clinton signed an amendment to The Higher Education Act making it near impossible to discharge student loans in bk. Prior to tat, if my memeory is correct if you had been in default for some period prior to filing the det was discharged.
I'd suggest you contact the lawyer who handled your bk and see if you qualifed for discharge.

 

[allwipedout]

Thank you very much for your reply bigun.

I have contacted my original attorney but unfortunately, I cannot afford her services at this time. I was hoping to be able to take care of this myself, but this seems to be complicated.

On another note, I went through the PACER web site and got my bankruptcy information, but it does not have some of the details that I was hoping it would have regarding my creditors and how much was discharged for each one. Is that information on the original paperwork, or would only my attorney possibly have that?

The reason I ask is that I had two Stafford loans, one subsidized and one unsubsidized through Citibank Student Loans, which was listed on my bankruptcy, so I believe I may have discharged one of the loans. I later paid off he other loan and I have received paperwork stating satisfaction of debt and I am now clear to reapply for Title IV Aid.

How would I know if something was not discharged? There is nothing in the PACER paperwork showing that anything was not discharged.

 

[bigun]

Your discharge letter will likely have verbage to the affect that all debts eligible for discharge have been discharged. You won't find a list that specifies the individual debt that were discharged.

 

[allwipedout]

So there is no way for me to know exactly what was discharged and what was not?

Would the court have a copy of my discharge letter?

 

[Indiana Filer]

So there is no way for me to know exactly what was discharged and what was not?

Would the court have a copy of my discharge letter?

The Court should have a copy of the discharge letter, but it won't say which specific debts were discharged. It just says all debts eligible for discharge were discharged.

 

[allwipedout]

Wow, that just seems crazy How would anyone know for sure if their debts were discharged then?

 

[seniorjudge]

Wow, that just seems crazy How would anyone know for sure if their debts were discharged then?

I've often wondered that myself.

BK docs are pretty vague.

 

[bigun]

I've often wondered that myself.

BK docs are pretty vague.

The code does have an exceptions to discharge section. If you don't have any of this, going on the debt is discharged.

11 U.S.C. 523