Student Loans IIB??

Anonymous · ‎08-09-2015

I have a ton of student loans. Like almost $150k in student loans. These include federal, state, and private. I was current on all payments before filing.

I am 100% aware that these are not dischargeable an a chapter 7 bankruptcy, but I got not notice last night that they were ALL reported as IIB. This dropped my FICO score by 100 points. ONE HUNDRED POINTS.

If they're not actually included in the bankruptcy, why are they marked IIB??

My 341 meeting has already happened (on the 5th... boy is THAT a story), but I'm not discharged yet. That will probably happen in Oct/Novish.

Thoughts? Is this normal? Will this correct itself after the discharge, or am I going to have to fight people? Gah.

Pway · ‎08-09-2015

@Anonymous wrote:
I have a ton of student loans. Like almost $150k in student loans. These include federal, state, and private. I was current on all payments before filing.

I am 100% aware that these are not dischargeable an a chapter 7 bankruptcy, but I got not notice last night that they were ALL reported as IIB. This dropped my FICO score by 100 points. ONE HUNDRED POINTS.

If they're not actually included in the bankruptcy, why are they marked IIB??

My 341 meeting has already happened (on the 5th... boy is THAT a story), but I'm not discharged yet. That will probably happen in Oct/Novish.

Thoughts? Is this normal? Will this correct itself after the discharge, or am I going to have to fight people? Gah.

Yes it is normal. When I discharged, it updated my accounts. However, some of my loans fell off my reports but they are listed on the Student loan database. There is nothing to worry about. Yes the drop in scores is correct after everything was updated to IIB.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.

TRC_WA · ‎08-09-2015

Mine were marked IIB... No payments due for the life of my Ch 13.

Once discharged I had new accounts opened (with the same 2001 origin dates as the original loans) and payment resumed.

The IIB student loan accounts fall off my report along with everything else in the coming months. Then I'll just have the current accounts showing on my report that report paid as agreed.

FICO8 current as of : 4-17-24 EQ: 724 TU: 707 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24

beezer32 · ‎08-10-2015

All debts (student loans too) are listed and IIB. They however not discharged.

savingmoney87 · ‎08-13-2015

OP, The issue is that the filing of bankruptcy still applies to them as well. They are not aloud to contact you while in your bankruptcy; therefore, it automatically defaults in their system. The good news is that In a Chapter 7 it normally corrects itself because upon discharge those loans normally are corrected.

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Anonymous · ‎09-28-2015

Wait a minute, I am very confused. I read online that student loans are considered unsecured loans in Chapter 13. So, if I file Chapter 13 and enter into a payment plan (below state median income) with the student debt be included and paid during my plan and discharged? What is my income is very low and 0% is going towards unsecured debt? Will my student loans still discharge?

I'm lost