Class Action Lawsuit May Offer Hope to Student Loan Borrowers in Bankruptcy

April 28, 2017 Posted by kingcade

Student loan servicer, Navient has agreed to stop collection attempts on certain borrowers who filed for bankruptcy, providing at least temporary relief for thousands of people and signaling there may be a chance of discharging student loan debt in bankruptcy.

As part of an ongoing class-action lawsuit, Navient has voluntarily agreed to stop collection activities on loans used by borrowers who filed for bankruptcy after October 2005 and used the loans to attend non-accredited schools.

Under the voluntary agreement filed with the court this month, Navient can still continue to send borrowers monthly statements, but the company will no longer aggressively call borrowers multiple times a day.

Plaintiffs in the case allege Navient attempted to collect on loans that were discharged in bankruptcy, including calling their relatives and employers multiple times a day.

The judge overseeing the class-action has not made a ruling yet, so it is unclear if he believes the debts should be discharged. But in a hearing to discuss whether Navient would stop collection on the loans at issue in the case, he pushed the company to do so, expressing sympathy for the borrowers.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at