My Graduate School Pursued Me for Payments in Bankruptcy


“Dear Steve,

I went through bankruptcy and my school filed an Adversarial Proceeding against me

I attended a graduate school that is not a Title IV school. However, they were engaged in a number of exploitative and unethical practices. I declared bankruptcy with no problems and my lawyer thought they wouldn’t pursue going after me because they are not a Title IV school and my loan was for $5000. She was wrong.

I recently realized that my loan was not in fact a loan. It was actually a deferred payment plan. Does that matter? What advice do you have to help me and others who attended these unaccredited schools and didn’t actually get a loan?


Dear Alice,

Go back and talk to your attorney again. The bankruptcy and adversary proceeding (AP) should have killed the liability.

I’m not sure what defense your bankruptcy attorney put up in the AP but this article talks about why non-accrediated private students loans or obligations should be a snap to discharge if contested.

From what you shared it sounds like the school was doing the contesting and not your lawyer.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

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