Student Loan Servicers’ Post-Bankruptcy Collections Blocked (2)

A New York federal judge issued a nationwide order enjoining a group of private student loan lenders and servicers from attempting to collect on consumer debts that borrowers allege were discharged in bankruptcy.

Two student loan trusts and servicers American Education Services and Firstmark Services, must cease collection efforts on thousands of borrowers, Judge Elizabeth S. Stong of the US Bankruptcy Court for the Eastern District of New York ruled Wednesday. Her decision is a major victory to a proposed class of individuals contending their loans were discharged in bankruptcy.

Lead plaintiff Tashanna B. Golden has been litigating in bankruptcy ...