Like many students, Barbara Hann financed her education partially through loans. These loans included three federally insured Stafford Loans of $7,500 each ($22,500 in total). Hann believed that she had repaid the loans, but later, when she filed a Chapter 13 petition, Educational Credit Management Corp. (ECMC) filed an unsecured proof of claim based on the loans. Hann objected. At a hearing at which ECMC failed to appear, Hann submitted correspondence from the lender that indicated the loans had been paid. The court entered an order sustaining Hann's objection. Despite the order, can ECMC resume its effort to collect on Hann's loans? Explain

Question

Camilla

Business

27 May, 09:39

Like many students, Barbara Hann financed her education partially through loans. These loans included three federally insured Stafford Loans of $7,500 each ($22,500 in total). Hann believed that she had repaid the loans, but later, when she filed a Chapter 13 petition, Educational Credit Management Corp. (ECMC) filed an unsecured proof of claim based on the loans. Hann objected. At a hearing at which ECMC failed to appear, Hann submitted correspondence from the lender that indicated the loans had been paid. The court entered an order sustaining Hann's objection. Despite the order, can ECMC resume its effort to collect on Hann's loans? Explain

+4

Answers (1)

Know the Answer?

Leyla Holland · Answer 1

The answer is: ECMC can not resume its efforts to collect Hann's loans.

Explanation:

Hann filed a Chapter 13 bankruptcy filing in order to adjust her loans, but student loans are not dischargeable in bankruptcy filings. When ECMC tried to collect unpaid loans on Hann, she was able to proof on court that she had already paid those loans. After the court entered an order sustaining Hann's claim, ECMC can not resume its effort to collect those loans.