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| Ch 7 Student Loan Question |
Question:
If a person was a co-maker in a
student
loan ( not the student
) and they filed for Chapter 7,
included the student
loan debt and recieved a discharge,
is the "student"
still 100% liable for the loan
Answer:
You guys and this student
loan stuff need to clarify the type
of student
loan. These so called private credit
based education loans
as they are called are nothing more
than a commercial consumer loan
that is dischargeable.
- Yes. Moreover,
unless the court discharged the
student
loan in a separate - proceeding
to determine the dischargeability
of the student
loan the Maker - is also still liable.
The basic discharge does not
reach the student
loan - obligation.
- You guys and this student
loan stuff need to clarify the type
of student
- loan. These so called private
credit based education loans
as they are - called are nothing
more than a commercial consumer
loan that is - dischargeable. I
try to be fairly complete in my
replies, but in this instance I
didn't see anything that would lead
me to believe that the OP's question
was related to anything but a "student
loan." How could you
tell the OP was asking about a loan
not covered by 523(a)(8)?
(a)
A discharge
under section 727, 1141, 1228(a),
1228(b), or
1328(b) of this title
does not discharge an individual
debtor from
any debt - *** (8)
for an educational benefit overpayment
or loan made, insured or guaranteed
by a governmental unit, or made under
any program funded in whole or in
part by a governmental unit or nonprofit
institution, or for an obligation
to repay funds received as an educational
benefit, scholarship or stipend, unless
- Because there needs to be a clarification
on just exactly what constitutes a
student loan. They are not all the
same. In Iowa for example it is written
right into the law that credit based
private student loans are a consumer
loan. I don't know what kind of loan
is being discussed here either but
they shouldn't be painted with the
broad brush that ALL student loans
are not dischargeable. Wells Fargo
tried that with me and lost in two
venues because they were these credit
based private education loans. Bankruptcy
court and state court both refused
their claims.This was one of
those citi-ist student loans by citibank,
the college was - a private college
.any change there? Although the rules
may vary a bit depending upon where
you reside, you'd at least need to
know whether a governmental or nonprofit
agency was instrumental to the availability
of the loan in question. To illustrate:
Northwest Bank is/was a for-profit
entity, but its involvement in student
loan funding is/was part of a complex
multiparty agreement that included
at least partial funding from nonprofit
institutions. In the 9th Circuit,
this partial nonprofit funding was
held to be sufficient to bring Law
Access program loans under the exception
from discharged articulated in 11
U.S.C. 523(a)(8).
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