NCT (National Collegiate Trust) does it will always be?
buy private student loan debt from banks and –
sue or you cannot try to collect.
A recent 8th Circuit Court of Appeals case,
In Re: Conway,?involved both NCT and
dischargeability of school loans in bankruptcy.
The bankruptcy debtor, Conway, had 15 different figuratively speaking, plus some federal student loans, quite normal.
At least fifteen were linked to NCT.
I say, connected, because I am defending several state court NCT education loan lawsuits on the grounds that NCT cannot prove they will own the loans.
No trials yet, but NCT dismissed one case, after rejecting a mediation recommendation that will have paid them a large amount of the student loan debt they claimed. ?My clients had accepted that recommendation.
It does not appear that the bankruptcy debtor raised that issue in her own student loan dischargeability lawsuit.
Michigan is in the 6th Circuit Court of Appeals, which enables partial discharge of student loans, as also does the 8th Circuit, which issued the Conway opinion,
That is, the bottom court did discharge 11 of Conway’s 15 college loans, but found that she had sufficient income to produce payments on the rest.
In bankruptcy, the debtor, that could be, the person filing the bankruptcy, is required to file a lawsuit against the student loan lenders, and prove it could be an “undue hardship” to have to repay the student loans.
I am not sure how you could sue NCT then claim you do not owe them hardly any money because NCT cannot prove it bought the financial loan(s). ?This is more of a defense into a lawsuit by NCT against the education loan borrower.
Just like VISA or some other creditor suing you, it has to prove that you owe it the money.
NCT isn\’t going to lend any money to anyone.
In order to determine whether there is “undue hardship”, the bankruptcy court is required to specifically analyze your income and cost of living, and, whether those conditions are likely to persist into the future.
After reviewing Ms. Conway’s income and expenses for your period of November 2013 through October 2014, the bankruptcy court held that Ms. Conway’s monthly disposable income was $170.30, by which she could make payments on four with the student loans without undue hardship. The rest of the 11 loans were dischargeable. Ms. Conway subsequently asked the bankruptcy court for making additional findings and amend its judgment in light of increased expenses and decreased income once the time period reviewed by the court, but that request was denied.
It must have been worthwhile to get rid of those 11 student loans.
My point being, don’t toss in the towel just because you heard it can be impossible to discharge student loan debt.