ColSandurz

Student Loans showing IIB on Credit Reports after BK

Recommended Posts

I filed a BK back in February of 2013 and it was discharged in June of 2013.  I am now in the process of trying to clean up my credit reports.  At the time of my filing, I hired a BK attorney and he had me include all of my creditors in my BK (including those that I knew would not be discharged, such as student loans).  I am not sure, but it's possible that I might legally be required to include all of my creditors in a BK (at least in my state of NJ).  Anyway, as expected, the student loans were not discharged (even though the discharge order from the court makes no mention one way or another, I believe from my research that some sort of adversarial court proceeding must take place before any student loans can be discharged). 

 

Unfortunately, despite those student loans not being discharged, they show up on my credit reports as IIB.  I thought that if they weren't discharged, they shouldn't really be associated with the BK in the first place, although maybe I'm wrong.

 

It's possible that the above is the expected way all of this happens (i.e. being required to include all creditors in BK filing, and then having non-discharged creditors show up as IIB on credit reports), but it just seems incredibly unfair that I'm being penalized twice basically with respect to my student loans - once because they weren't discharged, and again on my credit reports where it shows them as IIB.  

 

If the above is not the way it's supposed to happen, and those student loans shouldn't show as IIB on my credit reports, any information or help is greatly appreciated.  I just got off the phone with someone at one of the student loan companies, and he basically told me there was nothing they could do, and the IIB status for that student loan would remain on my credit reports for the appropriate time frame.  Specifically, if the student loans aren't supposed to show as IIB, and someone could refer me to some laws or regulations that specify this, it would be extremely helpful since I could then pass this information back to the student loan companies.

 

Any help is, as always, appreciated.  Thanks!

Link to post
Share on other sites

This site has some info on student loans in bankrupcy depending on if you filed Ch 7 or Ch 13:

http://www.nolo.com/legal-encyclopedia/student-loan-debt-bankruptcy.html

 

I believe it would depend on the state as to what they have you include when filing for the BK - if you don't want the loans to show as included since they were not, you should be able to contact the credit bureaus directly and have them update/remove the IIB status. If the student loan company isn't reporting it as such, the bureaus should update it fairly easily considering you can prove that the loans were NOT included in the BK.

Link to post
Share on other sites

Per FEDERAL law, ALL creditors must be included on the list of creditors when BK is filed.  You do not have a choice.  Because you filed, and you have non-dischargeable student loans, they can list IIB even if not discharged. 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.