Some private student loans, such as airline training school student loans, may be discharged in bankruptcy court under certain circumstances. However, many debt collection companies still attempt to illegally collect on private student loans erased through a bankruptcy.

Bankruptcy’s Automatic Stay Applies to Student Loan Collection

When a debtor files for bankruptcy, something called the automatic stay kicks in. The automatic stay temporarily prohibits most creditors from continuing with collection efforts while the bankruptcy process plays out.

But what if it’s clear that the debtor’s airline training school student loans or other private student loan won’t be discharged at the end of your bankruptcy?  It doesn’t matter – the automatic stay applies to student loan debt collection, even if those debts are nondischargeable.

This means that once a debtor files for bankruptcy, debt collection agencies cannot send the debtor collection notices, garnish wages, attach bank accounts, file a debt collection lawsuit, or do anything else while the bankruptcy case is pending.

Protection from Unfair or Abusive Collection: Airline Training School Student Loans

Unlike federal student loans, private airline training school student loans may be considered a consumer debt under the federal bankruptcy code. That means that debt collectors collecting on airline training school student loans are governed by the federal Fair Debt Collection Practices Act (FDCPA) and many state consumer rights laws provide substantial protection to consumers who are the subject of debt collection actions.

That means a debt collector cannot mislead, harass, or cannot engage in unfair or abusive debt collection tactics.

For example, if a debt collector is collecting on a private student loan discharged in bankruptcy, they cannot threaten to sue, they cannot collect on an improper amount, and they cannot lie about the applicable statute of limitations for the loan.

If a debt collector misleads or misrepresents a consumer about collecting on a discharged student loan, that can be a violation of the law.

Unfortunately, collections agencies may be routinely violating the FDCPA, because many private student loan borrowers who have been through bankruptcy are unaware of the laws that protect them. Here are some common ways that they violate the FDCPA:

• Calling you at unreasonable hours (i.e., in the middle of the night)
• Calling you at work after you’ve told them not to
• Threatening to take criminal action against you (i.e., arresting you)
• Contacting you if they know you are represented by an attorney
• Engaging in obscene or abusive conduct (i.e., calling you names, using profanity)
• Repeatedly or continuously calling you with the intent to annoy, abuse, or harass you
• Making false, deceptive, or misleading representations
• Misrepresenting your rights with respect to federal student loans
• Contacting family members, friends, or co-workers about your debt
• Using deceptive means to collect information about a consumer

Filing a Lawsuit Over Illegal Private Student Loan Debt Collection

Once these private student loans have been discharged in bankruptcy, any further attempts to collect them may be grounds for a lawsuit against the collections agency in federal court.

If you believe you have suffered from illegal private student loan debt collection efforts after going through bankruptcy, a student loan lawyer can advise you of your legal rights and help you determine your best course of action.

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.