INteresting - Student Loan Balances now reporting $0

[CH13INFL]

Kepp it short.... filed ch 7 back in July and at that we were including my student loan debt in BK. Balance for all loans at that time were just over $35,000 according to credit reports attorney pulled at that time.

Checked reports today as I received an update and now balance for student loans is now reporting as $0 and noted at included in BK filing in comments of recent credit report.


Any opinions to what this means? Hoping they discharge these loans. Of course, there is more debt included in BK filing, but this struck me as interesting.

[catleg]

I think this is a way to avoid sanctions for attempting to collect on the debt. Even though it's not discharged in BK they have to respect the automatic stay. Reporting it to a credit bureau can be perceived as an attempt at collections. In the same way, mortgages and car loans report 0 when they still have an interest in the collateral.

[Drazil65]

My husbands private student loans (Sallie Mae & PNC) showed up the same way until after discharge. Do not count on the student loans being discharged.

[CH13INFL]

Mine were purchased and now managed by private loan company back in 2003... lets see what happens

[ksgirl38]

It's possible they may have moved them to a new account number too. I found that was the case with a few of my loans. Verizon did that with my contract and seems like someone else did too. Maybe Sallie Mae or Toyota.

[keepmine]

Kepp it short.... filed ch 7 back in July and at that we were including my student loan debt in BK. Balance for all loans at that time were just over $35,000 according to credit reports attorney pulled at that time.

Checked reports today as I received an update and now balance for student loans is now reporting as $0 and noted at included in BK filing in comments of recent credit report.


Any opinions to what this means? Hoping they discharge these loans. Of course, there is more debt included in BK filing, but this struck me as interesting.

Did you file anAP and allow a judge to make the decision that the oans were discharged? If not, they survived bk.

[Pjmax]

Did your attorney tell you they would be discharged?

[kornellred]

Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”

The above is a quotation I copied and pasted from another website. (It is generic enough so that no one will ever take me to task)

The rules for proving undue hardship are very stringent and require an AP (adversarial procedure). If this did not occur when filing, then the student loans cannot be discharged.

[LadyInTheRed]

“will impose an undue hardship on you and your dependents.”

The above is a quotation I copied and pasted from another website. (It is generic enough so that no one will ever take me to task)

It's also pretty much the exact language used in the BK code: "would impose an undue hardship on the debtor and the debtor’s dependents." So, I think you're good.

[pinkpeanut01]

Ours were put into automatic forbearance and stopped reporting while we were in our Ch 7s. After our discharge, they came back but with new (and much lower) payments. They were refinanced or something. Now we just keep paying our old payment amounts to get ahead on principal.