Subscribe to our mailing list

X

Mother Wins Bankruptcy Discharge of National Collegiate Student Loan Trust Student Loans

By on July 14, 2015

A Los Angeles bankruptcy judge ordered student loans to be discharged on July 6, 2015 because they did not qualify as education loans under 11 U.S.C. 523(a)(8). Judge Neiter, United States Bankruptcy Judge in the Los Angeles Division of the Central District of California, presided over the adversary proceeding case no. 2:14-ap-01722-RN, Schwartz v. National Collegiate Student Loan Trust and granted Summary Judgment yesterday in favor of Ms. Schwartz, discharging nearly $63,500.00 in private student loans.

According to court papers and the Judge’s tentative ruling, Ms. Schwartz’s son had attempted suicide and was placed in a psychiatric hospital for three days. During his stay, he was assessed and determined he needed residential treatment. Upon admission to YouthCare treatment facility in Utah, her son was given an intake assessment and psychiatric evaluation. To pay for his treatment, Ms. Schwartz executed a loan agreement (“Private Student Loan”) through Bank of America, N.A., that was later sold to National Collegiate Student Loan Trust.

The Court stated in its ruling, “Defendant does not dispute that the loan at issue is not a qualified education loan under 11 U.S.C. §523(a)(8)(B). The court found in favor of Ms. Schwartz and ordered the debt discharged. The Schwartz family is grateful that the death of their son to a drug overdose is honored by the elimination of this lingering debt burden.”

The Law Office of Christine A. Kingston, author and nationally known student loan lawyer, handled the civil and bankruptcy matters. Attorney Kingston moved the civil collections lawsuit into bankruptcy court, reopening Ms. Schwartz’s bankruptcy case so that court could determine the dischargeability issue. “Each case is unique in my approach,” says attorney Kingston. “I look at the entire picture of my client’s lives and find a solution that gets them out of debt as quickly and economically as possible.” Attorney Kingston also advises those struggling with their student loan debts to seek the advice of an attorney because there are more options, including a bankruptcy discharge under some circumstances.

READ  National Collegiate Student Loan Trust Loans are a True and Utter Mess Maybe People Don't Owe

Source

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Research Department

Here is where you will find important stories located from around the web which can impact you and your financial life.

Share a Comment / Leave a Reply

%d bloggers like this: