We filed bankruptcy over 10 years ago. Part of the debt was a student loan from my husband. We had not heard a word for over actually 11 years when out of the blue comes a letter from the U. S. Dept of Ed demanding over $20,000 on a $8,000 loan. When we objected and asked for time it was sent out to "their" collection department for the fee of over $4000.00!!
They did give us one week to come up with $12,000 and they would write off the rest of the amount due.

I had a lawyer, a bankruptcy judge, all the forms that were sent out and creditors had X number of days to object, etc, etc. If a judge dismisses the debt how can they come back years later? Is the federal government exempt from the rules and laws that they have put in place to govern everyone else? We have worked hard and had decent credit, now this is reported as a debt that is years late... and we can not get a $1.00 loan.

Any ideas or just plain help would be greatly appreciated.

Patti

You need to speak with a bankruptcy lawyer asap. The chapter 7 bankruptcy law changed several years ago and made student loan debts non-dischargeable debts. Prior to that change in the law, a student loan was only dischargeable if it was more than seven years old at the time of filing.

You, that was 1998 I think.