5 replies to this topic

[loscow]

I filed chap 7 bankruptcy several years ago. All of my student loans - federal and private (C!ti) were listed. However, I don't believe I filed to have the undo hardship to have them discharged.

The trustee's closing remarks listed the total dollar amount of my debt, including all SLs as discharged.

My credit report shows the c!ti loans as discharged. I'm paying on the fed using IBR and they are reporting on my credit report.

I'm confused because immediately after the discharge C!ti contacted me and demaned payment in full, saying the bankruptcy automatically put me into default. I couldn't pay the full amount and about 6 months later was contacted by a CA. I haven't heard from them in over 2 years.

Am I free and clear of the private student loans?

[snowpuppy]

Good question with no straight answer.

Yes, they are a consumer type of debt and most Federal judges are reluctant to discharge them. There is no provision to hardship private SL's, only your Federal loans.

I would continue to lie low for a while longer, opt out, maybe even put a security freeze across all 3 CRA's for as long as you can and HANG ON to your discharge papers. If a CA contacts you, then respond and tell them they were IIB. See what the CA can come up with. Tell them no one from Citi ever showed up at your hearings.

[arameth]

I filed chap 7 bankruptcy several years ago. All of my student loans - federal and private (C!ti) were listed. However, I don't believe I filed to have the undo hardship to have them discharged.

The trustee's closing remarks listed the total dollar amount of my debt, including all SLs as discharged.

My credit report shows the c!ti loans as discharged. I'm paying on the fed using IBR and they are reporting on my credit report.

I'm confused because immediately after the discharge C!ti contacted me and demaned payment in full, saying the bankruptcy automatically put me into default. I couldn't pay the full amount and about 6 months later was contacted by a CA. I haven't heard from them in over 2 years.

Am I free and clear of the private student loans?

Wife is in the same situation. CC debt and one SL was listed in CH7 filing, and all were listed as discharded. SL servicer (AES) never bothered to respond or show up to hearing. Been wondering if we could just stop paying since technically it was IIB. Credit report does not reflect IIB, and shows paid as agreed (since she never missed a payment).

Wonder if your trustee could shed light on this? Or maybe seek advice of a BK attourney. Am very curious...let us know if you find out anything.

Good luck!

[BinaryMan]

I think what gets me the most is not whether certain loans are dischargable or not but the *ambiguity* in the laws where you can't really be sure. I spent hours trying to figure out this document: www.finaid.org/questions/bankruptcylimitations.pdf , and I've had to conclude that the most logical interpretation is that funds up to the cost of attendance are going to not be discharged, while funds in excess of cost of attendance are "true private" loans that may be discharged. The school should not knowingly certify or disburse anything beyond the COA from a federally backed source.

As to how it will play out, they seem to be doing whatever they want with the laws now, but the fact they didn't show up hopefully works in your favor. I tend to think the worse your situation, the more likely the court will discharge it, but I'm not sure how much standing they have to uphold that (again, the pet peeve here is no clear law on it - the outcome is unpredictable).

[cputrwz]

If you filed before 2005 then the answer is most likely yes they were included. They changed the laws in 2005 to not allow student loans to be dischargable. So, all student loans private or not are not dischargable now.

[loscow]

I filed chap 7 bankruptcy several years ago. All of my student loans - federal and private (C!ti) were listed. However, I don't believe I filed to have the undo hardship to have them discharged.

The trustee's closing remarks listed the total dollar amount of my debt, including all SLs as discharged.

My credit report shows the c!ti loans as discharged. I'm paying on the fed using IBR and they are reporting on my credit report.

I'm confused because immediately after the discharge C!ti contacted me and demaned payment in full, saying the bankruptcy automatically put me into default. I couldn't pay the full amount and about 6 months later was contacted by a CA. I haven't heard from them in over 2 years.

Am I free and clear of the private student loans?

UPDATE: I had forgotten that there was originally a little snafu with the discharge. After the court date, IIRC, I had to wait a certain number of days for the discharge. I was expecting the discharge paperwork, but instead got notice that the documentation of my credit counseling (or something like that) hadn't been filed, so the case wasn't discharged. The attorney then had to refile something and the case was discharged. I think it was inbetween the letter notifying me the case wasn't discharged and the actual discharge that the collection agency (lawyer) called me. When I spoke to the CA, I told them I had filed backruptcy and didn't have money to pay. I am leaning towards believing my private loans were discharged as it says in the backruptcy and credit report.