Student Loan Debt Collector Misleading Debtors

Although the ability to discharge student loans in bankruptcy is limited, it's not completely impossible. So a debt collector who told a debtor that her student loan debts couldn't be discharged in bankruptcy violated the federal Fair Debt Collection Practices Act, according to 2nd Circuit Court of Appeals. Since the ability to discharge student loans is very dependent on the facts of each case, the debt collector's blanket statement to the debtor was misleading and deceptive. An unsophisticated debtor might have assumed bankruptcy wasn't an option for them. It's not uncommon for student loan debt collectors to imply that bankruptcy can provide no relief to borrowers. If you're facing debt collection on a student loan and the creditor or debt collector suggests you no repayment options or that bankruptcy can't help please contact us at melissaatthompsonlaw@gmail.com.