Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law
This answer was rated:

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

situation got messed up and...
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.
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 25 minutes by:
6/8/2013
socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39,350
Experience: Attorney and Real Estate Broker -- Retired (mostly)
Verified
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.
Ask Your Own Bankruptcy Law Question
Customer reply replied 4 years 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?

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).
Ask Your Own Bankruptcy Law Question
Customer reply replied 4 years 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.

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
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39,350
Experience: Attorney and Real Estate Broker -- Retired (mostly)
Verified
socrateaser and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39,350
39,350 Satisfied Customers
Experience: Attorney and Real Estate Broker -- Retired (mostly)

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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

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.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, 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!!

ElaineAtlanta, 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.

TonyApopka, 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

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,672 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
If I need to declare personal bankruptcy in New York State
If I need to declare personal bankruptcy in New York State and need to protect my business from creditors what should I create a Corporation or LLC ? This is a small one person operation with no emplo… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,806 satisfied customers
I am considering filing a chapter 7 personal bankruptcy. I
I am considering filing a chapter 7 personal bankruptcy. I know some years ago there were some changes in the bankruptcy laws. What I need to know, first of all, is how much money can be retained in a… read more
LegalGems
LegalGems
Juris Doctorate
10,163 satisfied customers
Will my contracts with ATT, TV, and Cel phone be terminated
HI! will my contracts with ATT , TV, and Cel phone be terminated through bankruptcy 13 or 7? Thank you. … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I have a contract with a California corporation and the
I have a contract with a California corporation and the consideration are Pref shares of the company. There are three payments; an initial payment, 2 years later and 4 year later. Paid in thirds. The … read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,188 satisfied customers
In Utah there is a statute of limitation with respect to
In Utah there is a statute of limitation with respect to collecting on a note. If the creditor has made contact with the debtor during the period does that protect the creditor from having the statute… read more
Ely
Ely
Counselor at Law
Juris Doctor
266 satisfied customers
Assignment of an executory contract in bankruptcy or a
Assignment of an executory contract in bankruptcy or a workout. If a corporation underwent an involuntary wind down. Say an ABC (Assignment for the benefit of Creditors) would the "sale of all or subs… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
17,966 satisfied customers
I have an Executory contract. A 10 year license of software.
I have an Executory contract. A 10 year license of software. We are the Licensor. The licensee has paid for the license with shares of its company (private). There are milestone payments. I believe th… read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
I filed personal bankruptcy chapter 7 in 2011 and chapter 13
I filed personal bankruptcy chapter 7 in 2011 and chapter 13 in 2012. I receive a discharge for chapter 7 in 2012 and paid off my chapter 13 obligation in 2016. I did not not receive a discharge in th… read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
I have a question about the statute of limitations under
I have a question about the statute of limitations under UFTA or its successor statute. If I understand it correctly, a person who is deemed to have transferred something of value may be adjudicated o… read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
Personal Bankruptcy Chapter 7 in Florida, owner of a
Personal Bankruptcy Chapter 7 in Florida, owner of a one-person S-Corp services business. In filing Ch 7 (Personal) BK I understand I will relinquish all non-exempt personal assets. Question is on S-C… read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
I am in need of filing a chapter 11 personal bankruptcy due
I am in need of filing a chapter 11 personal bankruptcy due to abnormal circumstances … read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
I understand in personal bankruptcy this cannot be done, but
I understand in personal bankruptcy this cannot be done, but In a business to business environment, is it legal to publicize debtors who have filed bankruptcy, such as the company name, principals & a… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
55,411 satisfied customers
In the Utah code you sent me it states: 75-7-501 Rights of
In the Utah code you sent me it states: 75-7-501 Rights of beneficiary's creditor or assignee. "To the extent a beneficiary's interest is not protected by a spendthrift provision or Section 25-6-14, t… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
17,966 satisfied customers
Can a debtor pick and choose which executory contracts they
Can a debtor pick and choose which executory contracts they want to either assume or reject in their bankruptcy schedule filing? Or do they need to assume all/reject all executory contracts.Also, is i… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,672 satisfied customers
In personal bankruptcy, what can they take? If you have a
In personal bankruptcy, what can they take? If you have a house and a lot of little things in the house like furniture, clothes, books, etc. All the personal things people normally have that wouldn't … read more
Rovena Andoni
Rovena Andoni
Juris Doctor
10 satisfied customers
In Utah, is there a difference in the statute of limitations
In Utah, is there a difference in the statute of limitations on a "fraudulent transfer" in a bankruptcy compared to a judgement execution?… read more
Ely
Ely
Counselor at Law
Juris Doctor
266 satisfied customers
Does it matter which chapter of the BK code is used when
Does it matter which chapter of the BK code is used when assessing the statute of limitations issue?… read more
Ely
Ely
Counselor at Law
Juris Doctor
266 satisfied customers
If you file for personal bankruptcy in Florida and you own a
If you file for personal bankruptcy in Florida and you own a corporate asset, is that corporate asset considered separate from your personal assets? In other words, is it safe from being taken? Also, … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x