Discharged and Confused help

[determine2win]

How do I know if all debts were discharged in a bankruptcy?  I received a notice of discharge Sallie Mae is listed as one of the creditors that was discharged.... I was under the impression that student loans would not be discharged when filling bankruptcy?

[Anonymous]

It might be different in different states.  In our state, when a Ch13BK is discharged you receive a statement (also available online during the BK) showing how much each account was paid and what the original balance was.  Student loans must be paid in full, so after the BK is discharged, the balance must be paid.  Student loans can also continue to charge interest during the life of the BK.  The student loan people will send you a bill fairly quickly with information on balance due and interest accrued, along with your payment due date.

Best wishes to you in moving forward and re-building your credit!

Message Edited by utah2009 on 04-04-2009 06:28 PM

[determine2win]

Thanks, I called Sallie Mae on today you are 100% correct student loans are not dc ( unless you pass the undue hardship test which I hear is nearly impossible)  it does not matter what state you are in this is a federal law. 

[Anonymous]

So what did they do? Are you on a Rehab program now? Did they tell you how much your payment was? My loans are through AES and my CR states IIB.  So I was just wondering what is going to happen.

[Anonymous]

Speaking from experience your student loans are not collectable while you are in bankruptcy so it might give you the impression they will be discharged but they won't. No matter how hard you cross your fingers you will have to start payments again once you are discharged you just won't have charges while you are in bankruptcy. 

Hope this helps! 

[Anonymous]

RE: Cuteblossom.  That's a great name!

People might misunderstand the words 'discharged' and 'collectable'.  For Ch. 13 BK, student loans must be included in and payments will be made to the student loans as part of the BK.  When the BK is discharged, any amount still owing on the student loans will still be due.  Student loans can also continue to charge interest while in BK.  They send out a statement after the BK is discharged, which will indicate the amount still owing plus the interest accrued during the BK.  As far as being "collectable," they are not allowed to bill (or contact) you while in BK, but student loan payments will be made and are required to be made through the BK.  It just will be on the BK schedule rather than the student loan billing schedule.  (If your bill was $100 per month, that doesn't mean your BK will pay $100 per month.  BK's pay on their own schedule.)  My experience is that your monthly bill after BK will be the same as it was before BK - your final payoff date will probably change.  Other chapters (7, 11) may be different.

Cheers to everyone who's paid off their BK and then paid off their Student Loans!  Good work!

[Anonymous]

Sorry, no mine is a chapter 7.  I guess I was a little confused since they updated my credit report to state IIB and they removed the collection accounts. I just hope they dont come back and say I need to pay them $200 a month again, cause I can not afford it

[Anonymous]

Moms4Boys:  Ch 7 is so different.  If you want to avoid any surprises, it might be a good idea to make a quick phone call to the attorney to clarify.  Plus there's some good resources on this board - maybe start a new message titled something like "Student loans and Ch 7 BK" - I bet you'll get some solid info in the responses.  Good luck!

[determine2win]

In my case the student loans showed discharged on my credit report immediately after I was discharged.  But low and behold two weeks later it was changed to not due until sept 2010. I called Sallie Mae and they informed me I didn't have to make any payments until Sept of next year but suggested that I at least make payments toward the interest. I only have 3300 in student loans so I am hoping to have them paid off soon.  My BK was a chapter 7 as well.  Good luck!