Private student loan-after discharge

[RU5781]

Quick question.
I filed for chapter 7 in Jan 2020. Got converted to Chapter 13 in June. I came into some money, paid off my 13 100%, and got my discharge in June.
I have a small student loan with Discover. My last payment to them was back in December 2019, the month before I filed for bankruptcy. I never missed a payment.
As soon as I was discharged, they contacted me to start repaying. We set up the same terms as before. I made my first payment in June.
Yesterday, I started getting alerted from the bureaus. Discover reported it as a charged off loan now, though I’m paying. My credit took a hit.
Can they do that? The person on the phone told me the automatic stay doesn’t protect me from that.

[spacemonk]

A relative had the same thing happen to them but not during bankruptcy. They hadn't paid their private student loan for a few years (I think it was a mix of forbearance, deferment and just not paying a few months) and one day they noticed on their credit report that the student loans were charged off. About a month after they called to make a payment and the loan was gone. They told her that sometimes companies will just write off the student loan debt and there wasn't anything she could do about it. I don't remember the company but it wasn't discover. It happened shortly after the financial crisis.

[despritfreya]

Wait. . . While you are in the 3rd Circuit, the 2nd Circuit sitting in New York just ruled that private student loans are dischargeable. Here is a link to an article. The article contains a link to the decision.

https://www.reuters.com/legal/transactional/private-student-loans-can-be-tossed-bankruptcy-appeals-court-rules-2021-07-15/

Discuss this with your attorney. Not sure how the 3rd Circuit will handle this issue. Other considerations are the amount owed vs. the cost of fighting and the type of loan you actually took out.

Des.

[RU5781]

I only owe like 2k and I’m already discharged.