If a bank 'accelerates' a defaulted student loan, what kind of debt is it?

Question

I contacted Chase Bank about making a good-faith payment on a student loan. They informed me that they had accelerated the loan some months ago and now I owe the entire amount up-front and they will not accept any sort of payment arrangement. They offered me a settlement of 3 grand that I have to decide on come Monday, but there is no way on God's green earth that I can do that.

I'm wondering if, for the purposes of a bankruptcy, the loan is still considered a student loan, and whether or not Chase still owns it. It appears they sent it to their 'collections' department but its a number that goes straight to someone's office (no extension).

If the only way forward is waiting for them to garnish me on their own time, then fine (and good luck to them - I have nothing a judge will award short of the promise that one day I may once again be employed), but I would rather take action myself.

Answer 1

It remains a student loan, and can't be discharged in bankruptcy.

Answer 2

1

Answer 3

The loan is in default. It's up to them if they wish to take some alternative arrangement. The collections company has the decision there.