Student loan holders who were subject to debt collection attempts for private student loans after they went through the bankruptcy process might have questions about filing bankruptcy on student loans. Filing bankruptcy on student loans is an extremely complicated topic, especially because there are so many myths out there about what can and cannot be discharged in the bankruptcy process.

Bankruptcy and student loans are notoriously complex and should only be handled by an experienced attorney. In fact, some consumers allege that they were subject to improper debt collection attempts associated with private student loans after going through the bankruptcy process.

Further, some private student loan holders might not realize the impact of filing bankruptcy on student loans — some of their private student loans could have been discharged in the bankruptcy proces.

Those individuals who have been contacted for private student loan debt collection may not know that filing bankruptcy on student loans may discharge some kinds of private loans, whereas certain government loans cannot be discharged the same way. In general, most people assume that student loans cannot be erased in the bankruptcy process and this myth leads many people to be confused about the true impact of filing bankruptcy on student loans.

Filing Bankruptcy on Student Loans

People who have already been through bankruptcy after 2005 and still have large debts from private student loans may be eligible to participate in a class action investigation. The impact of filing bankruptcy on student loans partly depends on whether or not the loans were provided by the government or a private debt collector.

If you have already been contacted numerous times by a debtor attempting to collect a private student loan after you filed for bankruptcy and that loan was discharged, you could have grounds for a legal claim and could even be entitled to compensation for the debtor’s violations of the Fair Debt Collection Practices Act or violations of a discharge from bankruptcy order.

The primary purpose of bankruptcy is to protect borrowers from future debt collection attempts but myths about the impacts of filing bankruptcy on student loans abound across the internet, leading many people to assume that debt collectors can still reach out to them.

While it is true that many federal loans are extremely difficult to discharge in the bankruptcy process, the same is not true for all types of private loans. You could be entitled to actual damages against a private student loan lender if you have received collection attempts after filing for bankruptcy.

If you filed for bankruptcy and still continue to hear from private student loan debt collectors or have endured illegal debt collection practices directly associated with your private loans, you could have grounds for a lawsuit. While the debt collection itself may not be illegal, bankruptcy does afford certain protections when it comes to private student loans and other types of debts that can indeed be discharged through the bankruptcy process.

In order to fully understand the impact of bankruptcy on student loans, it is recommended that anyone in this situation consult directly with an experienced attorney.

DISCLAIMER: Debt collection itself is not illegal. However, creditors and debt collection firms collecting on consumer debts must adhere to the FDCPA and respect bankruptcy discharge injunctions. Even though consumer debt attorneys are investigating these companies, their debt collection practices may be legal.