Private Law School Loan Issues


Y

Yankee26

I had a financial reversal recently and so I have hired an attorney and
he filed my ch. 7 action last week in BK Court in the SDNY. In
addition to my significant consumer-related debts, we listed my federal
and private loans on the Schedule F. I know that the federal loans are
not dischargeable. No issue there.

ISSUE ONE: I have been told by numerous people that my private loans
are not dischargeable either (they were law access loans now serviced
by AES/Graduate Loan Center) because these types of private educational
loans are generally guaranteed by a non-profit--I have not investigated
to see if the guarantor in this case is a non-profit, but if someone
could get me up to speed on the blackletter law on this topic, I would
appreciate it. I need to know what facts to look for before I go
rummaging. I would hate to fail to discharge if they are somehow
dischargeable. Other pertinent facts: no disabilities, no undue
hardship. The private loans were incurred in FL and I am a resident of
NYC.

ISSUE TWO: If these private loans are not dischargeable, I will have to
deal with the private loan holders. I ran out of deferrments and
forebearances and the servicer arbitrarily, for what its worth, refused
to grant a discretionary (on their part) forebearance that I have
applied for now twice. They are threatening to sue for a judgment and
will be able to, I would assume, after the automatic stay is lifted. I
am not going to sit back and let them stick it to me if I don't have
to. They have been incredibly rude and unhelpful and uncooperative
over the phone and so, frankly, I am spoiling for a fight if they
insist on suing me after the stay is lifted. Do I have any grounds (or
cause of action) to hammer these guys in order to get them
house-trained long enough to negotiate in good faith? Of if someone
has a better strategy, I'm open to suggestions.
 
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