Does this seem right??

[Viper]

When we filled BK7 my wife's student loans were in default. We were getting letters demanding payment in the tune of $69K. I checked her CR and found the following entries:

9 separate entries from 'US DEPT OF ED/FISL/ATL' with a credit limit totaling $48,334. All these entries show a recent balance of $0 and the status is 'Petition for Chapter 7 Bankruptcy/Collection account.'

Then under all of those entries is one more from 'US DEPT OF EDUCATION' with a credit limit of $52,036, recent balance $0, and the status is 'Collection account.'

Is this how it is normally reported, showing a $0 balance while in BK? Will this change back to $69K after discharge? or is it possible someone goofed, and the debt will be discharged (wishful thinking i know)?


-Viper

[bkfiler]

doubt it will be discharged. if they made mistaktes like that they would be out of business faster then i would selling Mary K Cosmetics.

those are probably a listing of each time you took out a new loan for the semester or year. no idea why there are reporting like they are with the balances. at least one should show how much you owe as a balance. i think mine finally got grouped together after i combined them into one with a lower apr.

if it was in collections then the account can say collections or late or whatever the truth was.

[StaciMM]

I can only speak for mine-which were in good standing at the time I filed. (Had just gotten them back that way-they never went into default but I do have a total of 15 late payments in less than 30 months of scheduled payments.)

They are now showing deferred, not showing a payment amount, but do showt the balance owed.

Yours may be different because they were in collections. Just thinking as I go here.

[lostsoul23]

Not too sure why they are reporting like that. Intresting, to say the least.

Very seldom do student loans get discharged. With the proverbial seven year rule being done & over with, and having to show hardship to get them discharged, the only other ways it's supposed to happen is a) death of the debtor and b) become totally & perm. disabled. If your student loans are in default, I'd work on getting them consolidated while you are still in the automatic stay of bankruptcy.

I used to do debt collection, and focused on student loans. Your best bet is to focus on getting them consolidated now, so you have just one payment to make afterwards. The process of consolidation can take up to three months, so the sooner you start the better. Personally, I used "William D Ford." You can google for their website, and they will send you packet. Fill it out, zap it back to them, and when you get the consolidation done & over with, you should get "paid in full" letters from the orginal note holders. When that happens, GUARD IT WITH YOUR LIFE. It used to baffle me how many people would say they had paid their loans off and had no way to prove it, and it would take months of legwork to finally figure out whether or not they had. As a footnote, depending on what your wife has her degree in, there are certain guidlelines that can be met where all or part of student loans can be forgiven. For example, there are programs where teachers who teach in low income/high crime areas can get some of their loans forgiven, etc.

Good luck.