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     | Monday, February 26, 2001 - 06:16 am  Christine and anyone else!! I need your help. I may have a small problem or reward on my hands. I've been disputing with all three CRA's since early this year. On TU I disputed the listing for the tuition owed by a University I use to attend. I included it in my CH7 back in 1/1996. My dispute was just for it to say "Included In Bankrupcy". Ok I get a letter today from the school that reads verbatim: The Billing Office recieved a dispute reguarding your account from the credit bureau. Review of the account revelaed that a new ruling from our legal representative has been recieved since your bankruptcy was discharged. The adjustment has been made to your account reducing your balence due to $2598.08 based upon Section 523 (a)(8) Title 11 United States Code of Bankrupcy Reform Act that established the non dischargeablility of educational benefits and obligations. If you have any questions, contact our office at (###)###-####. Signed Collection Specialist Ok first thing that strikes me wrong is "new ruling from our legal representative". That sounds like a shady play on words. Second why did they reduce the debt? It's now less than the original debt if I remember right. I'm trying hard to find this section of code but I'm sure that any law that was passed would not effect CH7 from 1996. Are these guys making up law or bending the wording? Isn't this a lawsuit? This account has been held by at least three angencies who just gave up maybe the inhouse guys are taking desperate measures?? Also the statute of limitations has passed for this debt. As of today it's over 6 years old. The SOL for my state for written contracts is 6 years old. (I guess this falls under written contract) I'm not going to respond to the letter as yet since TU only has about 3 more days to respond to my dispute. Maybe it will fall off of that report from the school not responding. Bayhouse whats your take on this? Anyone know where I can find that section of the Bankruptcy reform act? I'm going to look now..
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| | Monday, February 26, 2001 - 07:38 am Ok guys I found the section of the Bankruptcy code they are refering to. Items not dischargeable.... (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 excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents I guess theres a portion in there that could be loosely interpreted as "tuition". I owed tuition, this school allowed people to carry a balance but you couldn't register for the next semester carrying a balance. This portion right here could be loosely interpretted as carried tuition "... or for an obligation to repay funds received as an educational benefit, scholarship or stipend,..." Then again why would the Bankrutpcy court discharge my debt. In fact this was the largest debt on the bankruptcy so it wasn't overlooked. Also as I said before the statute of limitations has passed for this debt even if I didn't file for Chapter 7. I think I should just ignore them altogether in hopes that they did not/will not respond to the CRA's request for update. Maybe it will fall off, because thats my aim in any case. Still looking for opinions.
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| | Monday, February 26, 2001 - 11:25 am If your tuition is included in the same category as student loans for BK purposes, then I'm pretty sure the SOL does not apply. Student loans do not have an SOL. You should try to find out if this is true for your tuition. Educational debts follow a completely different set of rules than any other type.
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| | Monday, February 26, 2001 - 12:36 pm Mel, That what I was thinking. The law is not very explicit but when I see a list of NON dischargeable items it always says "student loans". With Student loans you could get your degree and then file bankruptcy. That would hurt only the Government. Also with Student Loans being the greatest form of aid alot of people may go bankruptcy. If you owe a school they will not issue a transcript for you to benefit from any of the credit you earned. In my case I have WF's straight up and down (for this school). Also if they really felt I still had an obligation to them, I think they would have tried to sue me by now. I had one creditor sue me for just $700 in 1994. I remember sending them a cease and disist letter in 99 when they tried to collect a debt. I can understand why they wrote this time since I did go for verification. I guess the worst that could happen is they don't verify that I filed Chapter 7 with them. Then maybe I'll have a fight on my hands. Well in a few days TU should be back. Lets see what move will they make.
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| | Monday, February 26, 2001 - 03:42 pm Didn't your lawyer explain what will NOT be discharged?
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| | Monday, February 26, 2001 - 04:35 pm Hopefully it will be corrected on your report and you won't have to worry about them. I doubt the school would sue, but you never know.
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| | Monday, February 26, 2001 - 05:32 pm Christine, Acutally that was one of my first questions. He said tuition could be discharged and it was. Plain as day on the bankruptcy papers. In fact the debt I had with them was about 40% of my liabilities. So the trustee couldn't have missed that either nor the Judge that signed it. I guess the school got the letter and is doing what I would try to do if I was in there situation (trick me into paying). I also think they pulled a report and saw that I'm back on my feet and I could possibly afford there "settled" amount. The school probably has report pulling capabilities since they can report directly. Well I'm only a few days from TU comming back. If the school was going to sue they would have done that years ago.
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| | Monday, February 26, 2001 - 05:43 pm If it was legitimately discharged, isn't it illegal for them to try to collect the debt? If this doesn't get corrected on your report you should contact a lawyer for sure.
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| | Tuesday, February 27, 2001 - 04:48 pm Send a copy of the bankruptcy discharge papers to the credit repositories. You have it right there in black & white that it's discharged. I don't care what they think about whether it can or can't be discharged. The bottom line is that in America if you don't show up to contest you lose. Did they show up to contest it? No? Then they're discharged.
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| | Wednesday, February 28, 2001 - 05:35 pm Thanks Shylock, Well TU "should" be back anyday now. I think TU is trying to buy some more time.. So I am going to call them on the 2nd of March. There letter they sent confirming the receipt of my dispute said I should get a report with the results. If I didn't get it by the 23 of March call them. Yeah F'en Right.. That would be almost 50 days! If that a sly way of tricking people? I see why it's neccessary to send it return receipt. Man if I only knew this stuff YEARS ago.
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| | Thursday, March 01, 2001 - 05:16 am Shylock is right. Collection activity must cease on accounts included in bankruptcy. Creditors can't unilaterally decide the law doesn't apply to them. Here is a link about a company, Cross County Bank, that got too full of itself. You must have Acrobat reader to read this link: http://www.ncmb.uscourts.gov/opinions/docs/Niegro.PDF
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| | Thursday, March 01, 2001 - 03:13 pm Did you guys get a chance to read this opinion? It sounds like at some point the victim turned over his checking account information to these losers and they continued to draw against his account? Can you believe it! This should be a warning to everyone who thinks about calling in a payment and giving out their checking account information. (Assuming I read this right, of course). Sometimes I wonder if this stuff is the result of someone intentionally ignoring the law or a computer glitch. I mean did some manager make the decision to bilk this guy's account knowing he was breaking the law or did the computer not show his bankruptcy. The malice of it is frightening. I am just glad I don't do business with these guys anymore. I closed both accounts I had with them, even though they were some of the longest positive histories I had. Their policies scared me.
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