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  1. #1
    Join Date
    Dec 2010
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    3

    Default Re: After Chapter 7 Collections on Private Student Loan

    First off, thank you for taking the time to reply. Here is the part that has me confused: Transunion and Experian have all the student loans discharged and the furnishing information provider is the actual student loan company with their address. Why would the holder of the loans want to report them incorrectly as discharged in chapter 7 bankruptcy? When I filed it was before Bush made changes to give private loans the same protection as government loans. The trustee was made fully aware of the undue hardship. Anyhow, could someone please explain to me how the information furnisher who is the actual student loan company would report them as discharged if they were not?

    The truth is that everything else on my reports has the information furnishers providing 100% exactly correct information to the penny each and every month year after year. Last thought, but I researched the information furnisher that is different from Equifax and that company bought out that office location in June of this year that was a branch of the original student loan company. Thank you again for your time and help.

    Last point for now, but I did rock the boat with the other 2. More specifically, one major credit report, Transunion, had 50% as discharged and 50% as not discharged. In response, I rocked the boat/disputed them and the results came back as ALL discharged with the student loan company furnishing the information. So, I go to Experian next and all the loans are listed as active. In response, I rock the boat/dispute them and they ALL come back as discharged in Ch 7 zero balance etc with the address of the student loan compoany furnishing the information. I am assuming that there are many experts that help out on these boards and it is my hope that this post my shed some light on my issue.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: After Chapter 7 Collections on Private Student Loan

    Quote Quoting mounty1966
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    Here is the part that has me confused. . . When I filed it was before Bush made changes to give private loans the same protection as government loans. . ..
    So, you filed your Chapter 7 prior to October 17, 2005. This information does not appear to be in your original post (if it was I apologize as I did not see it). That does change things. Prior to October 17, 2005 some student loans were dischargeable without the need for a Complaint. However some of BAPCPA went into effect in April, 2005. I am not sure if the revision to the student loan provision of 523(a)(8) was part of those changes, but I doubt it.

    Prior to the implementation of BAPCPA only federal insured loans and/or loans funding by a non-profit were non-dischargeable. However, even that was up in the air as any loan that was even remotely funded by federal or non-profit dollars could have been subject to the non-dischargeability provisions of what was then 523(a)(8) which read in part: "for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution. . ."

    Compare the old version to the new version: "for an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution. . . OR (the new part) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code. . ."

    There are some additional changes relating to the poor drafting of the old version but I think you get the point.

    So, if you filed before 10/17/05 (and assuming the change was not effective in 4/05 or if it was you filed before 4/05) AND your loans were not funded in whole or in part by the government or a non-profit, then YES they were discharged without the need to file a Complaint.

    Des.

  3. #3
    Join Date
    Dec 2010
    Posts
    3

    Default Re: After Chapter 7 Collections on Private Student Loan

    Thank you once again for your time and effort. For the record, they were Stafford loans from Sallie Mae which is a private company, but I always had to complete a FAFSA (federal application for student aid), so does that complicate/change matters? For the record, I filed in 9/05.

    I did some research and I thought I read repeatedly that the federal trustee at that TIME, still had the authority to address an undue hardship and discharge student loans. I will keep an eye out for your reply if you have the time again.

    I may wait a bit to hear back from you before I contact my attorney. Last question, but how can I access the court records at the federal courthouse? Funny thing, but Transunion and Experian representative basically swore that the updated information from the actual student loan company was the unquestionably truth and for me not to worry. However, I also realize that money is the root of all evil and I will believe it when I see it (I have seen it on 2 credit reports). Take care and happy holidays to everyone!

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: After Chapter 7 Collections on Private Student Loan

    Quote Quoting mounty1966
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    Thank you once again for your time and effort. For the record, they were Stafford loans from Sallie Mae
    Sorry, Stafford loans are govt. backed loans. . . not discharged pre or post BAPCPA. My guess is that at some point you will be contacted by Educational Credit Management Corp who usually services such loans.

    The only way to discharge such loans through a bk is to file the appropriate 523 Complaint. A Trustee has no authority to do anything. The Trustee's job is to find assets for the benefit of creditors. He does not represent a debtor's interests.

    Des.

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