how should student loans report in bankruptcy?

[granny031350]

I put this question out there.

Details:  Currently in Chapter 13 due for discharge in December 08

Equifax and Experian show loans as Derogatory, Included in Wage Earner Plan with the balance showing

TransUnion wiped out the balances with the Derogatory notation, Included in Wage Earner Plan.

So after discharge, how will these loans report?

As no balance, with a balance, back to paid as agreed? 

This change tanked my scores by 30/40 points across the board. 

Account No.: xxxxxxx xxxxxxx xxxxxx

Condition: Derogatory Derogatory Derogatory

Balance:   $3067 $3067 Type: Educational Educational  

Pay Status: Wage Earner Plan Wage Earner Plan Wage Earner Plan

 Past Due:     $0

 High Balance: $3236 $3236 $3236

Terms: 144 months 127 months

Limit:      

 Payment: $25 $25 $25

Opened: 05/01/2000 05/2000 05/2000

 Reported: 01/01/2008 08/03/2005 07/2008

 Responsibility: Individual Individual Individual
Late Payments (last 7 years):   30 Days Late:   0     60 Days Late:   6     90 Days Late:   2  

Remarks: [TransUnion] Chapter 13; wage earner plan account   [Experian] Student loan - payment deferred.
Debt included in or discharged through Bankruptcy Chapter 13.   [Equifax] Consumer disputes - reinvestigation in progress
Included in Chapter 13  

[Anonymous]

I am having this same problem except my bankruptcy has already been discharges and trans union is the only ones reporting as derog.  They also put my balance at 0.  If someone would answer it would be appreciated.  Thanks 

[LynnInMN]

Even though student loans are non dischargable, they will report just like any other item in the BK.  Once a BK is discharged, it will go back to the same status as it was prior to the BK...so if you were current, the loan will be current.  If you were in default, the default returns.

It sometimes does take some time for the BK stay to be lifted off student loans...dont ask me why.  I have seen cases where the borrower called in a week after only to have to wait 6 months for the account to be come active.

Keep in mind that once the BK is discharged, all interest will be updated that accrued during the BK stay.

Also, and this doesnt happen often...filing BK can cause your loan to default.  I cannot remember which but we had a couple of FFELP guarantors that defaulted loans as soon as the BK papers arrived.  From what we were told by reps from the guarantor, it had to do with "intent" to pay...and from what they told us it totally legal.