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Federal Loans after Chapter 13

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    Federal Loans after Chapter 13

    Hi all,

    So I got my ch. 13 discharge on September 18th (Not even a month ago). My plan included private (Sallie Mae) and federal (Through ISAC - Illinois Student Assistance Commission) student loans. Because the amount of student loan debt I had was fairly large, I rolled it into the chapter 13 plan to get the plan percentage to 44 instead of 100. I'm not one of the special cases where discharge is possible... So obviously I owe the other 56% now that my plan is over.

    I've been working on disputing a bunch of items on my credit report, and I got my Experian dispute results back, which included a new copy of my credit report. In the last week or so, ISAC has taken ALL SIX of my federal loans, which they were receiving payments for through the plan, and put them in COLLECTION status and tanked my credit score by over 100 points. I've received nothing from them in the mail attempting to collect on the loans, and it's been less than 30 days since my discharge.

    Should I contact my attorney? I would have called them today, but they're closed for the holiday. I wasn't able to find any information on situations like this. I'm HOPING that since the 6 ISAC claims were rolled into one giant claim, they just misappropriated my payments and we can get this whole thing reversed, but according to the NDC, I've been making payments since 2010 on these loans. There's NO WAY I'm 9 payments behind, which is my understanding is the point where you hit default.

    If I call them, will they even talk to me? It's marked as a collection account, and as you can imagine, seeing SIX collection accounts and a 100+ credit score drop within 30 days of discharge is NOT the relief I was trying to get through Chapter 13.

    What would be the best course of action to remedy this?

    #2
    Were the payments made by the trustee the same as the payments due under the original contract with no payments missed from your last payment to the trustee's first payment. If not, you might be in default.

    They probably will talk to you at this point. Call and ask them for a statement of account showing your default. Your attorney may be able to help you, but that will probably cost you money. I'd try to straighten it out yourself first.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


      #3
      The loans were in deferment when I filed. I've literally never been asked to pay a dime from these people.

      It's my understanding that the default repayment terms are 10 years. Since it's been 5 and I've paid 44%, I can see how I'm possibly considered to be behind. However, 9 months behind? I don't think so... And defaulting me the second I'm discharged? That's just sneaky and evil.

      I'll try giving them a call tomorrow. There's got to be something I can do to make sure my score doesn't suffer for ANOTHER SEVEN YEARS because of this stupidity.

      Also, their web site clearly says that you're in default if you've gone 270 days without making A PAYMENT. Their last payment in the plan was at the end of august.

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        #4
        I just wanted to provide an update in case anyone else gets stuck in this situation... Since I googled the crap out of this and found zero information.

        I finally got a hold of ISAC about the loans. It turns out the loans only live with them DURING bankruptcy, as they are the GUARANTOR. Within 30 days after discharge, the loans are re-puchased by the original lendors. DURING THAT TIME, the loans are reported on the credit report as "In Collection" but apparently that's due to the fact that the credit bureaus don't have a status for "Awaiting repurchase after bankruptcy."

        I'm told that this will all disappear once the loan repurchase is complete. That's a huge load off. Let's just hope it works that way.

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          #5
          just wondering if your credit report ever recovered... i realize it has been a while, but I find I am now facing a similar situation.....

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            #6
            Originally posted by Dt3813 View Post
            just wondering if your credit report ever recovered... i realize it has been a while, but I find I am now facing a similar situation.....
            Yes. It took about a month or two, but the accounts disappeared from collection status and went back into repayment properly. Hang in there.

            Comment

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