How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 33515
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

i went to a university in 07 when i was 17. my scholarship

Resolved Question:

i went to a university in 07 when i was 17. my scholarship situation got messed up and i ended up having to leave early. now the account is closed and charged off. My question is is there a way to dispute this since i was a minor at tne time i went and the time i left the universtity? they have it on my credit report as an education loan, but i never agreed on any loan terms or anything like that. It was money owed to the bursars office and i was denied a fee waiver. Now im trying to repair my credit and go back to school and i want to get this settled once and for all. The seven years that it is supposed to be on my credit report is up in about a years time. But i dont want this to keep haunting me even after that. All the lawyer offices I call want $120 to 200 just to talk to them. what is the best way to handle this situation or maybe settle this account even tho it is charged off. would this still be on my report after 7 years? they have not sued me and stopped trying to contact me years ago, but i dont want to apply for credit cards and loans with this on my report.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 1 year ago.
Hello,

Under Indiana Code 34-11-2-9 a written contract for the payment of money must be sued upon within 6 years of the date of breach (date when a payment becomes due and payable and it is not paid). The same is true for a contract not in writing (oral): six years. IC 34-11-2-7.

Your facts suggest that you can no longer be sued on the debt, as long as you raise the statute of limitations as a defense, if you are sued. Note that there is no statute of limitations for a true student loan -- so, if there is language in your original scholarship agreement under which it would be converted to an educational loan if you did not remain in school for a specific length of time, then your liability for the debt will never expire.

Assuming that the debt has already or will soon expire(d), then once the debt reaches the seven year mark, you can file a dispute letter with each of the three credit reporting agencies (CRAs), and demand the removal of the claimed debt. 15 U.S.C. 1681c(a)(4). If a CRA refuses to remove the negative entry, then you can sue each CRA for actual damages or $1,000, whichever is greater. 15 U.S.C. 1681n.

Any debt collector that attempts to impose a negative entry that violates the above-stated conditions can be held liable, in the same manner as the original creditor. This means that if the original creditor sells the debt to a debt collector after it is deemed no longer collectible, then from the date of sale or charge to profit or loss, whichever is later, the debt must be removed no later than seven years later.

There are no ways around these laws -- other than to wait out the time limits, and complain/sue if the credit report entries are not removed.

Please let me know if I can be of further assistance.
Customer: replied 1 year ago.

do I have a resonable reason to dispute the report? seeing as i was 17 at the time? I do not owe for my scholarship, only the tution, room and board to the school. would any lawyer take my case or would they just tell me to wait it out? Also if the account is charged off, would the school i owe barre me from going to school there until i pay?

Expert:  socrateaser replied 1 year ago.
Do I have a reasonable reason to dispute the report? seeing as i was 17 at the time? I do not owe for my scholarship, only the tuition, room and board to the school. would any lawyer take my case or would they just tell me to wait it out? Also if the account is charged off, would the school i owe barre me from going to school there until i pay?

A: A minor may disaffirm a debt for other than necessaries. Room and Board are clearly necessaries. Tuition is arguably not a necessary. But, none of this will matter to anyone other than a judge. The creditor would have to sue you, so that you could defend your position and obtain a favorable judgment. You can't sue the creditor for declaratory relief on a debt that has already been incurred -- and even if you could, the cost of that lawsuit would make your debt to the school seem trivial by comparison. Declaratory relief cannot be obtained in a small claims court. You have to sue in regular civil court, and that means lawyers and big money for legal expenses.

Re the school prohibiting your return until the debt is paid, that's entirely possible -- and entirely legal.

The only other option would be personal bankruptcy. That would wipe out your debt obligation entirely, but you would have the bankruptcy on your record for the next 10 years (though, most people's credit starts to improve within about 2 years after the bankruptcy is discharged).
Customer: replied 1 year ago.

what i meant by disputining was the contract part. they called it an eduacation loan on my credit report, I was wondering how effective disputing this to a credit bureau would be on the basis that i was a minor. could i dispute the tuition but not the room and board? also once the 7 years is up and this comes off, will any of this show up on my credit report?


I mean any of lt as in the account was charged off and delinquent.

Expert:  socrateaser replied 1 year ago.

what i meant by disputing was the contract part. they called it an education loan on my credit report, I was wondering how effective disputing this to a credit bureau would be on the basis that i was a minor. could i dispute the tuition but not the room and board?



A: The CRAs don't care about your being a minor. A CRA is not a court. All the CRA will do is to attempt to validate the debt with the debt collector. If the debt collector states that the debt is valid, then it will remain on your account, and you will have to sue both the debt collector and the CRA. At that point, a judge may decide that the debt is not an education loan. But, the CRA will not attempt to make this distinction.

 

So, the answer to your question here, is that unless you intend to actually sue the CRAs and the debt collector for violation of 15 U.S.C. 1681n or 1681o, then your dispute will almost certainly fail.

 

In my opinion, your status as a minor, at the time of the original transaction, is probably irrelevant. The issue is whether or not the tuition, room and board represent an educational loan, because if they do, then the debt is not dischargeable, regardless of your status as a minor.

 

also once the 7 years is up and this comes off, will any of this show up on my credit report?

 

A: Yes, even if it is an education loan, it will be deleted after 7 years.

 

Hope this helps.

socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 33515
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.