“Dumbass Kentuckian” Sells Handgun to Pay for Bankruptcy Over Student Loan Mistake

Robert Morel, a man from Kentucky, was entirely frustrated when he was pursued for years over a student loan he never took out for truck driving school he never attended.

By the time Morel was having his wages garnished and tax refunds intercepted he was extremely pissed off and frustrated. Who wouldn’t be?

The Courier Journal reports, “the ordeal began nine years ago when he started getting letters and calls about a Stafford loan through the U.S. Department of Education.”

“I’m a dumbass Kentuckian,” Morel said. “But I had worked so hard. … Then I have all this pulled right out from underneath me.”

Morel said he barely graduated from the ninth grade and had never set foot in school again but he was being pursued for student loans he never was obligated to pay.

“He said one collection agent tried to play to his patriotism, urging him to repay the money to help out others who’ve served their country. “I about flipped out.”

This nightmare went on for years and years. Even though Morel tried to get his mistake corrected with the Department of Education, the wage garnishments continued. The wage garnishments caused Morel to fall behind and risk losing his Camaro.

Thankfully Morel connected with a local bankruptcy attorney, John Wilson, who asked the Department of Education to verify the debt while Morel and his wife lived on Ragu and egg sandwiches.

Wilson sent multiple letters but was getting nowhere slow with the Department of Education. It seems the truck driving school had closed down 20 years ago and the lender was also long out of business.

To get some legal attention on this issue Wilson suggested the next step was to file for Chapter 7 bankruptcy. But to raise funds to pay for the bankruptcy Morel sold his Springfield 40-caliber handgun for $400 and borrowed some money for a friend to pay the $1,475 lawyer fees and costs.

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Except for the eventual repossession of his cherished Camaro the story has a better outcome with the help of some good legal action.

“After several months of haggling with the U.S. Attorney’s Office in Louisville, which was acting as an intermediary, the agency and Morel reached a settlement in March. The Department of Education said in the settlement agreement that resolving the matter would save time and more expensive litigation.

The agency agreed to reimburse his wages, tax return and legal fees, about $7,300 — and discharge the student loan.

For Morel, it’s a hollow victory. His credit score plummeted 100 points to 629. He’s still waiting on the refund check. A cut will go to Wilson.”

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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