I filed a BK7 on June 20, 2005 and was discharged on Sept. 24, 2005.

I started school at Loyola University New Orleans the last week of August 2005. I received a student loan refund from the school for $3300. Then Hurricane Katrina hit. The semester was cancelled and Loyola sent the loan money back to the lender. I was never told this. I owe no money to the lender for this loan, it was paid back in full. Now, it appears Loyola has sold a debt of $3300 to a collection agency and they are coming after me.

Is there any way I can legally say this debt was included in my BK7?

It is not a student loan. They wanted a lump sum not installments. Also, i am currently attending Louisiana State University and received student loans there without a problem so I am not in default on any student loans.

I have sent a DV letter to request verification.

Any suggestions would be greatly appreciated. I would love to be able to tell them it was included in bankruptcy. Let me know if you need any more information.

Jacqkeen

I would definitely say that it is not dischargeable. First off, you filed in June, and this was new debt that was accrued after your filing, so as far as my understanding, debt up to the filing date are the only debt discharged.

Since this money is owed to the school and not the lender, it wouldn't show a neg status on your student loans, but it will be reflected on your credit report as an amt owed to the school in collections (assigned not sold). Also, if you do not make payments my guess is they will attempt a judgement after you.

My suggestion is make payment arrangements with them. Since this was money that you took and spent, you should pay it back, since you would've been paying it back to the bank anyways...

Good luck.

Thanks for all the input. I am going to contact the school and try to work out something with them. If I am able to, would I be able to tell the collection agency that and have them remove the collection from my credit report?

More than likely this wont happen. When the school hires CA's, there is a contract involved between the school and the CA. When I was in collections, I collected for Loyola University in Chicago. The collection department of the University I worked for later was the same. The school basically keeps their hands off the accounts....all inquiries and payments are forwarded to the CA. The CA will get a pay direct for payments made at the cashiers office of the school.

Keep in mind that you will also have collection fees assessed to your account. They could run anywhere from 20-40%. Since your account is a few years old, the fees will probably be higher as a 2nd or 3rd placement account.

Off the Loyola site...

In the event that the delinquent account is placed with an outside agency for collection, all collection costs, attorney fees and court costs incurred will be passed on to the student.