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Consumer Files Their Own Bankruptcy Case and Eliminates Their Navient Student Loans

By on July 24, 2017

Thomas Lathrop filed his own bankruptcy Adversary Proceeding to get his Navient private student loans discharged in bankruptcy. Mr. Lathrop pursued a strategy I’ve been talking about for sometime. The fact he did this himself is amazing. Not an approach I generally recommend but he belted this one out of the park.

He spotted the fact the school he attended was not a Title IV eligible institution. The school was not recognized by the Department of Education and thus not protected from discharge under bankruptcy as a Qualified Education Loan.

To learn more about this issue, click here, here, here, and here.

According to public records, Mr. Lathrop attended Video Symphony for instructional classes that we funded with Navient private student loans. He was there between July 2005 and December 2006.

According to the available Federal School Code Lists for those years his school was not Title IV recognized and did not appear on the Federal School Code List.

You can read Mr. Lathrop’s complaint he filed to achieve the discharge of his private student loans.

Navient and Mr. Lathrop came to an agreement instead of letting the court issue a final ruling. In the agreement Navient agreed all of Mr. Lathrop’s private student loan debt was completely discharged in his bankruptcy filing.

Here is the good news court document.

So you see, it is actually possible to easily discharge some private student loans in bankruptcy, no matter what people say.

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About Steve Rhode

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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