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Private Student Loans lawsuit

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I co-signed on a private student loan for my daughter back in 2005. Payments began 6 months after graduation (began Dec. 2006) until the wife and I filed Ch. 13 BK in Oct. 2008. Our BK attorney told us that although they would not be discharged, neither could they collect from me or my daughter while the BK was active (5 years). Unbeknownst to us, the original lender AES sold the loan to another lender and then to a collection agency, Transworld Systems. TWS made contact in 2015 to set up payments which we did. They would only do 3 monthly payments initially after which they said they would contact us to make permanent payment arrangements. The last payment was drafted in July 2015 and they did not contact us further and we could not find their contact info. NC debt collection laws are 3 years for all debts. Bottom line is as it is almost 5 years since the last activity (payment July 2015). can they pursue with any collection activity? (Yes, I know they can try to do whatever they want, but legally I do not believe they have a leg to stand on.)

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The account shouldn't be on your credit report at all especially since negative accounts must be removed from your report at the 7 year mark. As far as court goes remember that the company is outside the 3 year statute of limitations. I'm also being sued for a private student loan from 2008 and I was served lawsuit papers in December even though the debt was from 12 years ago! I had the loan through AES just like you. 

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3 hours ago, jaymann864 said:

The account shouldn't be on your credit report at all especially since negative accounts must be removed from your report at the 7 year mark. As far as court goes remember that the company is outside the 3 year statute of limitations. I'm also being sued for a private student loan from 2008 and I was served lawsuit papers in December even though the debt was from 12 years ago! I had the loan through AES just like you. 

Not sure how this works for co-signers, but student loans are typically not discharged in bankruptcy. 

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The quirk here is the private nature of the loans.  Federal loans are next to impossible to see discharged, although there are still a few loans from the era of dischargable loans.  I don't know what the current private loans look like (and anything in the past 15 years IS current to me when discussing student loans).  You really need to look at the loan documents AND spend time reviewing the bankruptcy Code in effect on the date you filed.  You ALSO need to look at what the Court signed off on through your discharge...

 

A concern is going to exist that you could have effectively revived a loan through your payments in 2015, creating a new post-BK instrument.  Again, this is WHY you need to be reviewing every scrap of paper related to the loan AND the BK

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