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Was My Wells Fargo Private Student Loan Really Discharged in My Bankruptcy? – Linda

“Dear Steve,

In 2007, I filed Ch 7 bankruptcy and I was told my private student loan w/ Wells Fargo was not discharged.

Move ahead to Sept 2009. I was served papers from a local debt collection lawyer in CO about collecting this debt. I negotiated a settlement and am awaiting to see the final paperwork concerning the settlement prior to giving the collection lawyer any money.

Well, I decided to check my credit report last night to see how this debt was listed, and to my surprise, both Experian and Equifax stated the debt was discharged in bankruptcy and the balance due was zero. My question is, is the collection from the lawyer legit? How do I know if this was really discharged in Ch 7? Should I proceed w/ the settlement (which is about 50% of the original balance)?

Thank you,


Dear Linda,

Interesting situation and I can see how it could be very confusing.

Private student loans can’t be discharged in bankruptcy but that doesn’t mean it wasn’t listed in the bankruptcy and then ended up being reported as included in a bankruptcy.

I seriously doubt the loan was discharged but it is easy enough for you to check. All you need to do is contact your bankruptcy attorney and discuss the situation with them. Maybe they will tell you by some technical miracle it was actually discharged. Don’t bet on that lucky outcome yet.

If the bankruptcy attorney confirms that the loan was not discharged, regardless of what the credit report says, then the settlement offer sounds like a good offer.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


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See also  Single Mother Wins Student Loan Bankruptcy Discharge and Has it Ripped Away on Appeal

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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.


  • I am also going through the same situation right now and it is frustrating. I have the majority of WF student loans and then a smaller actual federal student loan. During BK my federal loan automatically went into forebearance, where-as WF actually slapped on LATE FEES because my dad is a co-signer. I get discharged from BK and come to find out now I owe a bunch of money to WF.

    My lawyer honestly does not know what is going on and never advised me on an adversary proceeding during my BK case. Chapter 7 is vague on only saying “most” student loans are not dischargeable. I am not paying WF anymore until this gets figured out.

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