I've never posted here before but have been trolling around for a while. I have posted this in the student loan forum as well since I am not sure exactly where I would get the best advice since I think it might be a unique situation.
I have a discharged chpater 7 bankruptcy from 2004 and I am trying to get some things cleaned up. I had a number of student loans (some of which were in my name, some were parents', some were a combo and it's tough to tell 10 years later...)
Long story short: AES services 6 GATE Loans I had taken out in my name for miscellaneous expenses while at school. They did not go towards tuition. I have no copies of the original promissory notes or any paperwork (what 18 year old files those away properly?). When I went through bankruptcy, I listed AES/PHAA/NCT as a creditor and listed those 6 accounts (Original loan values of $2k(x3) and $500(x3))
My lawyer said that she spoke with AES and was told that my loans were not dischargeable since they were guaranteed and they were administered by a non-profit. At the time, I had no idea what I was doing so I took her word for it. They continued sending me monthly statements and I continued making payments. I have done this for the last 6 years and they have reported to the CRA's the correct balance and a perfect payment history.
This month, I checked out my Experian report and saw that I had 6 new accounts listed as KD, with 0 balances and a notation for IIB. So I pulled my other reports and the same thing. All show perfect until August 2009, where it switches to the KD bankruptcy note.
Now, this pisses me off for a couple reasons. Obviously, 6 installment loans times 72 monthly on-time payments on 10 year old accounts are probably a significant positive on my score. My score fell 40 points on the day they reported the new status.
Second, I recieved no notification from AES. In fact, I got my monthly statement showing my payment due in September. Logged into my AES account online and my accounts all show up with payments due and nothing has changed.
So, Not only did I not get the "benefit" of the BK7 discharge, I have paid over $5k to them and still have a $10k balance somehow... But now I lost any positives I had from the on-time payments. And even worse, I still have to pay them!
So, I have been thinking about it and researching, but it's difficult since the law was changed in 2005 to make ALL education loans non-dischargeable. But, from what I can gather, it appears that Bank of America funded the loan, and AES simply administers the repayment. First Marblehead bank has something to do with it as well.
I believe that these loans WERE discharged by the bankruptcy judge, and that realistically, their continued payments due and statements sent to me are illegal collections. I don't have money to hire a lawyer at $350 an hour to research the situation, but if it turns out that I am due a refund of the illegally collected payments, I would certainly be willing to pay a lawyer to handle that. I just don't know what steps I need to take right now.
I assume my first move should be to ask for a verification of the debt from AES to see if I can get copies of the signed notes. At least that way I can tell if thy fall under FFEL, Title IV program (not quite sure what that means, anyway). From what I have gathered, if they don't fall under those, they are eligible for a bankruptcy discharge (without hardship), before 2005.