Will they sue me for my private student loans after my bankruptcy? 9 Answers as of April 29, 2015

I am in the process of filing for chapter 7 bankruptcy on about $10,000 worth of credit card debt. I have about $40,000 of private (not federal) student loans that I'm sure will not be discharged. I have 3 years left until the SOL comes up.

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If they sue you then we would have to answer in order to try to disprove ownership, or other. And no it will not be discharged
Answer Applies to: New York
Replied: 4/29/2015
Ronald K. Nims LLC | Ronald K. Nims
Private student loans are exempt from discharge. So basically bankruptcy does not affect them at all. They can sue you on those loans until the statute of limitations expires.
Answer Applies to: Ohio
Replied: 4/28/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
There in SOL on student loan debt. And, yes they will go after you post bankruptcy. After the ch7 a ch13 might keep them at bay. See a lawyer about that.
Answer Applies to: California
Replied: 4/28/2015
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
Impossible to say if and when they will sue. On another note, many of us are hoping that the bankruptcy laws will change and the private loans can be discharged as well without having to go through litigation process proving "undue hardship". You can file another chapter 7 bankruptcy 8 years after the previous one and probably, though no one knows for sure, if the law changes after you get a discharge in your case you'll have to wait to file again because typically these types of changes don't apply retroactively to previous cases. I don't know if I'd wait though hoping for this because no one can say if/when it will happen. There have been several Bills proposed during previous Congress sessions to make private loans dischargeable like other debts. Those Bills have died in committee, never got voted on, then congress session expires and a new Bill has to be written. I'm pretty sure there is another one right now, same thing, but don't know what will happen. The President doesn't have the power to make unilateral changes like these and only Democrats have been signing and supporting these Bills to restore bankruptcy protection to private student loans. In the most recent mid-term election both House of Reps and Senate went to Republicans so I'm not holding my breath and of course it's sort of frustrating to see such results, wondering if the reason is because people don't bother to vote in mid-term elections, which makes a much bigger impact. Still in my humble opinion I do believe the BK protections will be restored at some point. Yesterday I read that the FEDERAL student loan debt grows by 5 billion each MONTH! That statistic came from Federal Reserve Bank of St. Louis. It just doesn't seem like something sustainable in the long run, feels like the tech bubble and real estate market bubble. Good luck to you. I may also suggest you join some facebook groups like "forgive student loan debt" group", which has over 10K members, some of whom are very active in the fight to change the rules. It's also a decent place for chatting with people in the same boat, even if just to vent out frustrations or get some news on what is going on as members post links/news articles/surveys/petitions.
Answer Applies to: California
Replied: 4/24/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Are you sure it is a not for profit school? Assuming the student loans are not discharged in your Chapter 7 filing, you should expect to hear from the student loan folks after you receive your discharge. The SOL starts running anew every time you make a payment, no matter how small the payment.
Answer Applies to: Colorado
Replied: 4/23/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    It is hard to predict what a lender might do, but since bankruptcy does not discharge student loan debts, unless you bring an adversary suit under the Brunner test, the lender would have the right to sue you after the bankruptcy was discharged. During the bankruptcy, the statute of limitations clock stops ticking, so the lender would get additional time to sue you before the sol runs out.
    Answer Applies to: Nevada
    Replied: 4/23/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    If the loans are indeed private there is no reason they won't be discharged.
    Answer Applies to: California
    Replied: 4/23/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    As I recall, all statutes of limitation on federal student loans were repealed in summer and fall of 1991. (I have not checked on recent developments in detail, but I am aware there is a ten-year forgiveness of loans under certain conditions, and you may be better informed about that question than I am. Also there are bills and proposals now pending for some easing of the burden.) You can assume that virtually all student loans are excluded from the bankruptcy discharge, unless you are so badly disabled that it is impossible for you to pay even part of the loan. This does not necessarily mean that your lenders will necessarily sue you after the bankruptcy. It is sometimes possible to work out a new payment plan, for example. But the student loan creditors are free to try to collect after the discharge.
    Answer Applies to: Wisconsin
    Replied: 4/23/2015
    Michael J. Duggar, P.A.
    Michael J. Duggar, P.A. | Michael J. Duggar
    The amount is significant enough that a private lender may wish to sue. However, if the debt is within a trust instrument, it may be difficult for the lender to sue and they may have an excellent opportunity to defend the lawsuit. Best wishes.
    Answer Applies to: Florida
    Replied: 4/23/2015
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