Citibank student loan after Ch 7 BK

[Laurie77]

Hello everyone. I have read through the various threads and haven't found an answer to my question, so I apologize if I'm repeating something already here.

I filed Ch 7 BK, 341 was 2/8/11, I am 56 days in and still no discharge. (another concern, but for another time) I have a Citibank school loan that I knew I was not able to discharge, so it was not included in my BK. After I filed, they took away access to my online account. I called them and they told me it was because of the BK and I'd have to mail payments or take them to a Citi branch. (but I would not receive statements or any correspondence from them while the BK was open) I have been mailing them payments every month.

I've read from others that Citibank basically sold their loans to the guarantor after the filing, who then turned them over to a collections agency. I know no one can tell me what Citibank will do in my case, but any advice? I'm hoping that after I've been discharged, Citibank will resume access to my online account and I can go on paying them as normal. The threads I read were people attempting to discharge the private school loan or they were past due. I did neither, so I'm curious how I will be handled.

Thanks everyone!

[help1234]

We have a Citibank parent plus loan. During BK continued to make payments thru billpay from bank. About 2-3 weeks after discharge received a letter from them stating internet access had been reestablished and reminding us that these were not dischargeable debts. Ours did not go to collections and after discharge, everything resumed as before. Hope this helps!!!

[KeithDoxen]

Like you said, none of us can tell you what they will do. They have the right to pass the buck to the guarantor, who will then demand payment in full, at which point you'll have to negotiate a payment plan. Or they may just resume payment where you left off. If they do decide to default your perfectly up to date loan, don't let them scare you with threats to sue. They CAN sue at that point, but to what end? You've just been liquidated of assets via bankruptcy. They're more likely to negotiate at that point, and you can probably set up a payment plan with them. Hopefully they will just continue servicing your loan like nothing happened. The problem is that the bank often seems to use bankruptcy as an excuse to get the guarantor to pay them in full, making the loan the guarantor's problem.

[wonderingrov]

I had a student loan through Citibank. In my case, it went into administrative forbearance while I was in the bankruptcy process. A few weeks after discharge, they took it out of forbearance and started the payments again the following month. Interestingly enough, the payments post-bankruptcy were about $12 a month cheaper than the payments prior to bankruptcy.

If you have access to your original paperwork, look over that and it should give you an idea of how it will be handled in bankruptcy. Look for wording indicating that a bankruptcy will be handled as a default. From threads I have seen on here, whether it goes into default or not is dependant primarily on two thing with Citibank:

1) Was it a private or federally-guaranteed loan (in the case of private loans, there seems to be a stronger chance of it going into default)
2) Who was the guarantor of the loan if it was federally-guaranteed loan. From what I have read on here, it seems that they have agreements with certain guarantors to automatically default the loans and file a claim if a student loan goes into bankrutpcy. If you know the guarantor, do a search on that guarantor in this section - that might give a clue as to how they will handle it.

On the two observations above, not that this is merely observations I have made from threads I have seen on this forum (and I did a good bit of research before filing myself - it seemed there was a lot more information on this forum about how Citibank handles these type issues than I was able to find anywhere else).

[screentest]

Hello everyone. I have read through the various threads and haven't found an answer to my question, so I apologize if I'm repeating something already here.

I filed Ch 7 BK, 341 was 2/8/11, I am 56 days in and still no discharge. (another concern, but for another time) I have a Citibank school loan that I knew I was not able to discharge, so it was not included in my BK. After I filed, they took away access to my online account. I called them and they told me it was because of the BK and I'd have to mail payments or take them to a Citi branch. (but I would not receive statements or any correspondence from them while the BK was open) I have been mailing them payments every month.

I've read from others that Citibank basically sold their loans to the guarantor after the filing, who then turned them over to a collections agency. I know no one can tell me what Citibank will do in my case, but any advice? I'm hoping that after I've been discharged, Citibank will resume access to my online account and I can go on paying them as normal. The threads I read were people attempting to discharge the private school loan or they were past due. I did neither, so I'm curious how I will be handled.

Thanks everyone!

This is exactly what they did to me. No contact from Citibank after my discharge at all. I was contacted by a debt buyer (Asurian Point)who stated they were collecting on my Citibank student loan. Citibank sold them the loan while I was in BK.

They wanted $4500.00, I countered with 3k and had the debt settled in about 5 minutes. I probably could have settled for less but they caught me off guard and I just wanted it to go away like everything else.

ST