topic Re: Student Loans Removed in Chapter 7? in Bankruptcy

Student Loans Removed in Chapter 7?

Anonymous — Mon, 20 Apr 2009 03:30:20 GMT

Through my employer I have GE Money credit monitoring. I just got my quarterly report. On there, under my student loans, it states, IIB. Has this ever happend to anyone else? Nothing has been discharged yet, so I was surprised to even see anything from creditors on there.

Here is the one to say removed: of course there are 4 of these with different amounts.

Removed

AES/PHEAA/ AES/PHEAA Ownership: Individual Date Status Reported: Date Open: Account Status: At least 120 days or more tha Balance Amount: $1882 Date Paid: Comments: Student loan assigned to government. Collection account

Then there is this:

New Accounts ("AES/PHEAA", "", "REVOLVING")

AES/PHEAA - REVOLVING wrAccountData(", "", "Individual", "Included in Bankruptcy", " ", " ", "03-2009", "", "", "Current", "", "Bankruptcy Chapter 7. Student loan") Account Number: High Limit: Ownership: Individual Account Status: Included in Bankruptcy Date Open: Prior Delinquency Balance Date: 03-2009 Past Due Amount: Balance Amount: Account History Current Monthly Payment: Comments: Bankruptcy Chapter 7. Student loan

What does this mean? Are they not going to have to be paid back?

Re: Student Loans Removed in Chapter 7?

Anonymous — Mon, 20 Apr 2009 10:33:50 GMT

Student Loans are exempted from BK, so if this is an SL you won't get it discharged. Have you spoken to your BK attorney on this?

The first entry says "assigned to government" which appears to mean it was government guaranteed. The government will come after the money, will file a lien on your CR and will attach tax refunds, etc.

Re: Student Loans Removed in Chapter 7?

krielly — Mon, 20 Apr 2009 15:47:20 GMT

Typically, when you file BK, your student loans go into forebearance. You are protected by the automatic stay of the BK, thus the IIB notation.

Once you are discharged, you will need to begin paying again on the SLs, but my guess is, they will not accept any payment until after your discharge. They do not want to be perceived as attempting to collect any debt from you while your BK is active.