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Collection added after filling BK 13


briant
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Hello,

I filled for chapter 13 (filling date 1/2003) and on one of my credit reports (Transunion) shows a collection record (amount for $30k and placed there 2/2003)

This amount is for my student loan and - I guess it was sold from my OC(Salli Mae) to a third party (ECMC) after i declared bk. I mainly filled chapter 13 as I have to repay my student loan and as that can not be done with chapter 7.

My question is: I was never late on my student loan payments (until filling bk), so can they add a collection AFTER I declared bk.

And furthermore can they report a balance (in this case the 30k)?

Thanks!

And last if disputing

*with whom? ECMC or TransUnion?

*with what argument? 'not mine' or 'wrong status' or 'included in bk'?

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You can make payments on a student loan when filing Chapter 7 since they are nondischargable.

If my memory serves me right, there is/used to be a clause under default and acceleration on the old FFLEP loan applications that stated that bankruptcy is a grounds for default. Actually from what one of the guarentee agencies told us while I worked student loan collections, "intent" or "threatening" not to pay is grounds for the servicing agency to file a claim against the guarantor. "Intent" is BK. Since you filed BK on it, Salimae will no longer service it. ECMC do lock box payments for BK accounts. From the ECMC website....

<ECMC services bankruptcies for borrowers whose student loans were guaranteed by the guarantee agencies of California, Georgia, Indiana, Louisiana, Massachusetts, Minnesota, Montana, New York, Oregon, Rhode Island, Virginia, Washington and Wisconsin.>

Unfortunately you cannot dispute this.

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thanks for your answer!

But what is the idea of a collection for them?

Before I got my credit report I did not know neither that ECMC bought the loan nor that it is an collection account (on TU, not on the other two)

I will pay them 100% back anyways over the next 3-4 years while im in chapter 13

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thanks for your answer!

But what is the idea of a collection for them?

Before I got my credit report I did not know neither that ECMC bought the loan nor that it is an collection account (on TU, not on the other two)

I will pay them 100% back anyways over the next 3-4 years while im in chapter 13

Anytime a student loan defaults it becomes a "collection account". While you are in BK, your payments will simply go to the lockbox. From what I know of ECMC, as long as the payments keep coming, they do nothing.

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I'm in a similar situation.

I read that with a collection on your file you are not able to get a new loan without having paid the collection off first.

So that means that everybody who is in a bk and has a student loan included in the bk is not able to get any new loan ? :cry:

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