Question:
Dear Steve,
Financial hardship due to husband early disability so retirement due to congenital heart failure. Bankruptcy chapter 7 file and debts discharged 2012
My parent Navient sallie Mae loan went into default. We had filed chapter 7 bankruptcy 2012 and included this loan. I’m getting threats from debt collector of garnishment of paycheck. My husband is in final stages of congenital heart failure. I have been in contact with Navient about this financial hardship for past 7 years. What rights do I have?
Diane
Answer:
Dear Diane,
First off I’m so sorry to hear about your husband’s health condition. It must be very sad and stressful.
When it comes to Navient if it was a federal student loan then the bankruptcy didn’t touch it because federal loans don’t have statute of limitations. If it was a private student loan then the loan would have to have been in default and past the statute of limitations for it to be discharged in your 2012 bankruptcy.
But that being said, in both situations you would have had to have filed a second legal action at the time of your bankruptcy. Your bankruptcy attorney would have had to have filed an Adversary Proceeding, essentially suing Navient, and asking for the court to rule on the inclusion and dischargeability of the loan.
It would not have been automatically discharged and even it it was as I described under the statute of limitations you would still have to push Navient to stop calling you. If by chance it was a private loan and discharged because of that statute of limitations issue and they were still contacting you to collect then you have a Fair Debt Collection Practices Act claim against Navient.
I honestly can’t tell from your question if it was a federal or private student loan. If you can update me in the comments below about which type of loan it is then I can give you a bit more guidance.
