Student loan debt is commonly believed to be exempt from the list of dischargeable loans in a bankruptcy. Surprising to some consumers, certain private “career training” student loans and Sallie Mae Tuition Answer student loans may be dischargeable  in bankruptcy.

A career training loan is one that was made by a private, for-profit lender and was not used for traditional four-year college expenses.

Among the types of career training student loan debt that may be dischargeable in a bankruptcy are bar exam loans and loans for flight school, culinary school, cosmetology school, paralegal school and others.

If you had these types of student loan debt and declared bankruptcy since 2005, but continue to be sought by the lender or their representatives for repayment, you could have a legal claim.

The Fair Debt Collection Practices Act protects consumers from violations of a bankruptcy discharge order violation. Any lender or debt collector can be held liable for willful violations of the bankruptcy discharge order when they continue to try to obtain repayment on a private, non-qualified student loan after the borrowing party has declared bankruptcy.

As a victim of illegal collection activities, you may be able to bring claims against a lender or debt collector in court. The offending party can be held responsible for actual damages they have inflicted upon you, as well as suffer punitive damages for willfully violating the order.

Bar Student Loan Debt Forgiven in Court

Lesley C. borrowed $15,000 under a CitiAssist Bar Exam Loan program in April 2009 when she was a student at Pace University Law School.

She made payments until June 2012, and filed Chapter 7 bankruptcy in November 2014.

Bankruptcy Judge Carla Craig of the Eastern District of New York said the bar exam loan was “a product of an arms-length agreement on commercial terms,” and said it was not in the same category as federal student loan debt. The bar study loan was deemed forgiven in the bankruptcy.

In previous cases, bar study loans have either been required to meet an undue hardship test or have been determined to be educational loans that are not dischargeable in bankruptcy proceedings.

Judge Craig explained that loans that relate to education are not necessarily made to confer an “educational benefit.” She said that otherwise, Congress would not have felt it necessary to specifically identify certain loans that are excepted from discharge.

Lesley’s Student Loan Debt Forgiveness case is Case No. 14-45990-CEC in the U.S. Bankruptcy Court for the Eastern District of New York.

Help if You Are Harrassed over Student Loan Debt Post-Bankruptcy

Many debt collectors continue to pursue collection of student loans that may actually have been discharged in bankruptcy.  If you have been subject to collection efforts for a private loan or Sallie Mae Tuition Answer loan after you had debt discharged through bankruptcy, you could have a legal claim.

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.