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  1. #1

    Default After Chapter 7 Collections on Private Student Loan

    My question involves bankruptcy in the state of: Colorado
    In 2009 I filed chapter 7. Before my discharge the bank that was holding my student loan emptied my checking and savings. This put me in a bind obviously. I then received my discharge papers and the next day the bank called and said I needed to get on a payment plan for my (private) student loan. In fear of them taking my paycheck again I agreed to 300 a month. Then I received my credit report and it said that debt was discharged and my balance was zero. After 15 payments my bankruptcy lawyer hasn't gotten back to me. The bank said they can't provide me with a statment, but could tell me how much more I owe. What recourse can I take, please help.
    Sincerely,
    Thankful

  2. #2
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    Default Re: After Chapter 7 Collections on Private Student Loan

    Are you absolutely sure your loans were discharged?

    Your credit report reading "zero" does NOT mean that the debts were discharged....

  3. #3

    Default Re: After Chapter 7 Collections on Private Student Loan

    Quote Quoting Dogmatique
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    Are you absolutely sure your loans were discharged?

    Your credit report reading "zero" does NOT mean that the debts were discharged....
    All three credit reports say discharged per chapter 7.

  4. #4

    Default Re: After Chapter 7 Collections on Private Student Loan

    All three credit reports show discharged per chapter 7.

  5. #5
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    Default Re: After Chapter 7 Collections on Private Student Loan

    Quote Quoting Feeling burned
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    In 2009 I filed chapter 7. Before my discharge the bank that was holding my student loan emptied my checking and savings... I then received my discharge papers and the next day the bank called and said I needed to get on a payment plan for my (private) student loan... I agreed to 300 a month. Then I received my credit report and it said that debt was discharged and my balance was zero. The bank said they can't provide me with a statment, but could tell me how much more I owe. What recourse can I take, please help.l
    1. A credit report is only as good as the flunky who inputed the info.

    2. Student loans (private or otherwise) are not dischargeable unless you filed an adversary and had the Judge determine that paying for them would be a hardship.

    3. If the loans are student loans, the lender is free to collect in any manner allowed by law.

    Des

  6. #6
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    Default Re: After Chapter 7 Collections on Private Student Loan

    I read on this post that the credit report is "only as good as the flunky who processed the information." The information comes from the actual source in almost all cases, so how could this "flunky" create their own information? For example, if Mercedes Benz Financial reports your last 27 payments exactly to the letter on your report would appear pretty accurate to say the very least.

    This topic is about student loans being discharged in chapter 7 bankruptcy. Right now I have 2 credit reports that shows all of them discharged in CH 7 with zero balance, the statement discharged in Ch 7, and the date that it will leave the reports. Here is the critical information on those 2 reports: the information furnisher is the student loan company itself. How could some "flunky" just create this on 2 credit reports? Furthermore, why would a student loan company furnish information that clearly states that the loans were discharged in Ch 7 if this were not true? Could someone here please answer that question for me?

    Last thought, but I am currently disputing the Equifax report as they have a totally different information furnisher saying that I still have these debts. Any ideas on this dilemma would be greatly appreciated! Take care

  7. #7
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    Default Re: After Chapter 7 Collections on Private Student Loan

    Quote Quoting mounty1966
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    I read on this post that the credit report is "only as good as the flunky who processed the information.
    Not what I said. I said "only as good as the flunky who inputted the info" .

    Quote Quoting mounty1966
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    The information comes from the actual source in almost all cases, so how could this "flunky" create their own information?
    Here are several examples all related to my credit reports: 1) Two of three reports use to say I lived in Sacramento. Can tell you for a fact I have never stepped foot in that city. 2) All three reports claimed I had a Spiegel account. Nope. . . never did. 3) Two of three reports claimed I had an account with Pac Bell - no doubt a phone number associated with that residence I had in Sacramento. As it turns out - and it took me over a year to fix it, they had me mixed up with someone else. Name and SS# apparently not even close. So. . ., when I say a bunch of "flunkies" I am not kidding, and, each agency feeds off the other therefore if one agency picks up incorrect info it is only a matter of time before the other two pick it up.

    Quote Quoting mounty1966
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    This topic is about student loans being discharged in chapter 7 bankruptcy. Right now I have 2 credit reports that shows all of them discharged.
    Okay, so you think that means that legally you no longer owe the student loans? If the lenders are no longer trying to collect and never contact you again I suppose your incorrect belief works but don't hold your breath. Unless you worked something out with the lender outside of bankruptcy or you filed a Complaint under 11 U.S.C. 523(a)(8) and got a Court Order granting a hardship discharge the student loans are still collectable. Just remember, there currently is no statute of limitations for the collection of student loans - at least government loans - not sure about private ones but my guess is the rule applies there too.

    Quote Quoting mounty1966
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    Last thought, but I am currently disputing the Equifax report as they have a totally different information furnisher saying that I still have these debts
    Sounds like Equifax has not picked up on the incorrect reporting of the other 2 reporting agencies and is still reporting the student loans correctly. If you are of the belief that the other 2 agencies are somehow benefitting you as it relates to the way the loans are reported you might not want to rock the boat. If you do, those 2 agencies may wake up, realize the info is wrong and then correct the mistakes, thus matching what Equifax is showing. Remember, they all share info.

    Best regards.

    Des.

  8. #8
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    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.

  9. #9
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    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.

  10. #10
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    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!

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