Re: Student Loan Charge Off - Bankruptcy[ Edited ]
10-03-2012 12:41 PM - edited 10-03-2012 12:43 PM
I don't have an answer, but I'm handling defaulted student loans after just getting discharged from BK, so this information might help you (at least if Citibank says it had no choice in what it did).
I let my loan default while I was trying to pay hundreds of thousands of dollars in medical debt. Finally, when the loan went to collection, I bit the bullet and filed for BK7. Once I stopped making payments on credit cards and the debt, I had money free to make student loan payments. I made a payment electronically to the pre-collection holder of my loan, AES (the collector was DCS) using the information from my previous online payments to them. I expected I'd get a statement after my first payment, but didn't. I called and was told that AES could not collect from me or contact me during the BK and that they felt like they shouldn't even be TALKING to me. I did get the CSR to verify that they had received the payment, and she gave me a better address to send it to when I paid online. She also told me that DCS had turned the loan back over to them as soon as I filed.
While I was in my automatic stay, I made 2 more payments to AES. Never heard (or expected to hear) from them. My BK discharged yesterday and I called AES today. They acknowledged the payments made during BK and told me the only way to start making payments again was to rehabilitate the loan. They asked (in a perfunctory way) if I could make a down payment, and when I said no, they settled for the $500 a month I've been paying for the last few months (well over the 1% minimum I've read about on these boards). After 9 consecutive payments the loan will be rehabilitated.
So while my experience tells me that Citicorp was right to say they couldn't contact you during the automatic stay, the fact is that AES did not send my loan back to collections. They did credit my payments while I was in BK. I'm not WORSE off now, the way you are.
If you used an attorney during your BK, I would call and ask about this situation. If you didn't, or don't feel comfortable calling, I do think you need to speak to another lawyer or some kind of consumer agency. There are penalties for violating federal credit law, and that might make this worth taking up by some lawyer.
Oh and I agree that Citibank or the collector should have called your attorney when they couldn't contact you-- I called the MCVCIS number to get the status of my BK, and it gives the name of the lawyer and the lawyer's phone number, twice. Anyone checking your account would've gotten that information (if you were represented).