Need Help

[pittsburghsucks]

What is the name of your state? Pennsylvania


am having a problem with a creditor even after my Chapter 7 case has been discharged 3 months ago. I go to a business school that if for profit in Pa. and I owed them a charged off debt from 2 years ago. They forced me to sign over my financial aide check to pay on it last winter. I had no choice I needed the other bit of money. I filed bankruptcy in April and my lawyer said that it was dischargeable since it was'nt a loan. The debt was listed and discharged in July as mentioned by the federal court. It's now Sept and I was found they are still charging me for the back balance that was discharged. They are with holding all my checks now saying they were not notified of it. The school filed a priority claim and were faxed papers by my lawyer to keep my loans coming. They won't give me a straight answer and always give me the run around. My lawyer said they have to release the money but won't do anything to help me. I am calling a family friend who is a good lawyer but would appreciate any pointers or ideas on this. I graduate in January but I want my money. I was told explicitly they have to let it go and drop it so now what.

 

[seniorjudge]

Ah! You found it.

This is not a duplicate post, folks.

I sent the writer over here....

 

[Ladynred]

The lawyer's not going to DO anything unless you pay him for his services.

I filed bankruptcy in April and my lawyer said that it was dischargeable since it was'nt a loan.

That would be correct, debt WAS dischargeable.

It's now Sept and I was found they are still charging me for the back balance that was discharged. They are with holding all my checks now saying they were not notified of it.

How can they file a priority claim and then turn around and claim they were not notified of your bankruptcy ?? That's bull. They're screwing with you.

The school filed a priority claim and were faxed papers by my lawyer to keep my loans coming.

What exactly did that paper say ??

Do you have a complete copy of your bankruptcy schedules ?? If not, GET THEM and keep them in a fireproof box for the rest of your life (and no, I'm NOT kidding).

If you HAVE the BK schedules, pull out a copy of the creditor's matrix where it lists the school as a creditor and this specific debt.

The debt was discharged, they have NO RIGHT to do ANYTHING to attempt to collect further on this debt. They are in violation of the permanent injunction of your discharge - they're breaking the law, big time.

Write them a letter. In it you remind them that on xx/xx/xx you filed for Ch 7 bankruptcy in xx district, case # xx-xxxxx, discharged xx/xx/xx. Attach copies of the creditor matrix, the schedule showing the debt to THEM, and a copy of your discharge papers. Then you tell them that if they do not IMMEDIATELY cease and desist ALL collection actions and release your funds, you will file a Motion for Contempt and Request for Sanctions against them with the Bankruptcy court. Let them explain to a BK judge WHY they are violating Federal law and defying the permanent injunction of your dischage. Tell them that you will request they pay ALL your court costs and attorney's fees as well as damages for their illegal actions against you.

Mail this letter certified, RRR and keep copies. If they don't knock it off and release your funds -- DO IT ! The Bankruptcy court takes a very dim view of creditors who violate the automatic stay and the discharge injunction.

 

[pittsburghsucks]

Cool

I think that I need my family friend who is a lawyer in on all of this. They think I am stupid and treat me as such. I have been trying to get them to drop it for 2 months now. They would not even acknowledge they were charging me still until last week. I will ask one more time tommorrow then if it does'nt change it's going back to the court. I am going to take in the schedule that I have and a copy of the discharge. I am going to mention to their face that this is the last straw then were going to court.

It's $1900 dollars but it's listed as the full amount on my schedule. I've been run aorund to the point where I never get any answers from them. I appreciate the help and my lawyer is going to dunk this.

 

[bdancer]

I go to a business school that if for profit in Pa. and I owed them a charged off debt from 2 years ago. They forced me to sign over my financial aide check to pay on it last winter. I had no choice I needed the other bit of money.

I'm a little confused. You had an outstanding balance at the school and they made you sign over a financial aide check to pay it. Now is this a case of the school wouldn't allow you to register for any classes till this balance was paid? And you had to be registered for classes in order to qualify for additional financial aide?

Was there a remaining balance after the check was applied or did you include the 2 year old debt AFTER it was paid? It would seem to me that you can't include paid debts in bankruptcy and then expect the creditor to return the payment. Is that what you are trying to do?

 

[pittsburghsucks]

The debt was not paid in full and yes they forced me to sign over a check to them. They actually made out a check for themselves and I needed the money so I signed it. They said they would include in this years financial aide package which I did not agree to. They wanted to start taking money from me in April by that time I was under the protection.

I held a remaining balance that was named in the petition which was ordered discharged. My lawyer said it would be discharged and for them to release the money. They were taking the money I owe for now and applying overages toward a back debt that was charged off according to them.
It was seperate and independant from the current charges and I was registered before they even realized it. The fact is they refuse to talk to me which makes me know they are breaking the law.