Student loans showing as IIB on credit

[4thmouse]

Hello folks, Also I have been discharged from chapter 7 for almost a year. I have several student loans on my CR, Bank of America has all the loans they are servicing as IIB on my credit report. How can I get them to change this, seeing as a student loan can't really be IIB?

I tried disputing online, However, it was ignored. Tried calling BOA and can't get anyone to listen to me. Do I need to talk to lawyer?
Am I stuck with a negative mark on a loan that can't be discharged?
Also these are federal student loans, Never been late and currently in deferment.

[HHM]

Unfortunately, that is the accurate way to report the student loans post BK. That is why your disputes didn't go anywhere.

Just because a debt is not discharged, doesn't mean it wasn't part of a BK. Also, technically, at any time between now and eternity, you have the option to file an Adversary Proceeding bankruptcy and request a hardship discharge. Those student loans are always part (included) in your BK.

[4thmouse]

That sucks. does no good to open a AP unless i am dead to completely disabled. Guess I just gotta live with the double wammy.

[HHM]

Yep, unfortunately, it is a double whammy

[4thmouse]

I notice you get alot of those after chapter 7. In the case of my mortgage I got 6 of them. lol.

[basketsbears]

Hi,

I have a question on this. I have student loans that are not in repayment status - on creditkarma all the amounts are still there - nothing is zero'd yet. I am still in good standing with the federal student loans. So, even tho' they were listed, since I haven't paid on them, will they show when my BK is discharged next month to help rebuild my credit?

Thanks!

[HHM]

Maybe, maybe not.

The point of my answer is simply to say, that having student loans show IIB is NOT wrong. If the agency handling the loans decides to report them more favorably, great.

[4thmouse]

Technically federal student loans are automatically reaffirmed unless a AP is filed are they not? and If they are not discharged and paid as agreed, it should not be reported as IIB. At least that was my thought and confusion. I called my attorney today and he is supposed to get back with me. Ill post the result.

[HHM]

Technically federal student loans are automatically reaffirmed

No such thing as automatically reaffirmed.

Student loans are simply non-dischargeable unless an AP is won. Keep in mind, all "included in bankruptcy" means is that the debts were listed in the bankruptcy and are part of the bankruptcy estate. Included in Bankruptcy is not a description of any "legal status" of the debt as either discharged or not. The debt, technically, is ALWAYS part of the bankruptcy estate. So even a non-dischargeable debt is part of the bankruptcy estate. However, since bankruptcy does not discharge the debt, the post BK discharge injunction does not apply. Also, and most debtors have a hard time wrapping their heads around this concept, a bankruptcy does not eliminate debt; a bankruptcy is merely a permanent injunction against any action to collect a discharged debt. A bankruptcy has an existence, so to speak, that transcends the discharge and closing of the bankruptcy. When you file bankruptcy, you create an estate (the bankruptcy estate). That estate consists of all your assets, any claims you have against someone, and ALL claims against you (your debts). That estate is like a separate entity, like creating a company; but in this case, you put all your garbage in that company. The estate never really "ceases" to exist. When the case closes, all assets except those retained by the estate are given back to you, in a legal sense. And even though student loans are not discharged, they are still part of that estate. However, student loans are not subject to the permanent discharge injunction.

When you boil down test under FCRA (Fair Credit Reporting Act) the issue is whether the report is inaccurate. So, although it might be "more accurate" to report non-dischargeable student loans, that were never in default and all payments current as Paid as Agreed, unfortunately, it is not inaccurate to report the student loans as IIB. I haven't found or heard of any cases to the contrary, nor have I found a debtor who wants to spend $30,000 to find out

[frogger]

nor have I found a debtor who wants to spend $30,000 to find out

Looks like the perfect opportunity for some of that "pro-bono" work!

[HHM]

Pro Bono

[4thmouse]

LOL, My lawyer agrees with you. He basically says the same thing you just did. In fact it was almost word for word. He is gonna send a letter to BOA and ask them to change there report, however he doesn't hold any hope it will change anything and says I will probably just have to live with it for the next seven. He says that he doesn't think it really bringing down my score all that much anyways. He is also telling me that when it goes into actual repayment history, It may change on its own.

Apparently though on the other hand, He believes the way my mortgages are reporting are entirely illegal, He tells me he is interested in litigating those.

Apparently OCWEN purchased my first and second discharged mortgage from WellsFargo a few month after the discharge. And now on top of Wells report, Ocwen is reporting as if they always had the loan, Even showing a payment history/ lack of. They are creating 6 tradelines where there were ever only 2 loans.

[hrguy]

It is interesting that you say that HHM - as this has been my plight for the past two months since discharge - getting my Student Loans to NOT report IIB. I thought the complete opposite, that it was illegal to have them say IIB. In my case, these are my oldest tradelines, and no late payments, so I want them to report and boost my scores. I guess it really won't matter either way then right?

[HHM]

I wouldn't worry about it that much. Student loans are barely more helpful than being an authorized user in terms of your credit score (to be clear, the new scoring guidelines BARELY factor in authorized user status). Reason being, for the most part, your credit worthiness is irrelevant to your eligibility to get student loans.

[frogger]

Hi,

I have student loans that are not in repayment status - on creditkarma all the amounts are still there - nothing is zero'd yet.

Thanks!

And why do you really care what is or is not on creditkarma?