I filed bankruptcy October 1994 and asked the Court for a hardship discharge of all my student loans. I had no idea until recently that my student loans were in fact discharged effective March 4,1995. My loans started out at approximately $39,157 and with interest compounded over the years ballooned to $73,588 and they are to date $81,504.
Because I did not know my loans had been discharged in 1995 I struggled to pay them.in May I mailed the bankruptcy information to Sallie Mae and they said they did not recieve them. I mailed them the documents a total of five times before the acknowledged receipt.
I recieved a letter from them 7/6 saying that my student loans could not be discharged unless they were in active repayment for more than 7 years prior to October 8,1998; However, they failed to acknowledge the Undue Hardship exception under USC 11 523 (a) (8) (B). My discharge reads:
It is ordered that:
1. The above-named debtor is released from all dischargeable debts.
2. Any judgement heretofore or hereafter obtained in any court than this court is null and void as a determination of the personal liability of the debtor with respect to any of the following:
(a) debt dischargeable under 11 U.S.C. 523;
(b) unless heretofore or hereafter determined by order of this court to be nondischarageable, debts alleged to be excepted from discharge under clauses (2), (4) and 11 U.S.C. 523 (a);
(c) debts determined by this court to be discharged.
3. All creditors whose debts are discharged by this order and all creditors whose judgements are declared null and void in paragraph 2 above are enjoined from instituting or continuing any action or employing any process or engaging in any act to collect such debts as personal liabilityies of the above-named debtor."
I sent them the following letter and for the 6th time, the discharge and schedules:
" Dear Sallie Mae,
You are correct in that most student loans could not be discharged unless they were in active repayment for more than 7 years prior to October 8,1998; However, you failed to acknowledge the Undue Hardship exception under USC 11 523 (a) (8) (B) which states:
Unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents, (see page 2 of enclosed document)
I received an undue hardship discharge March 4,1995. It was accurate and lawful. I again ask that you remove all information pertaining to this loan from my credit report and refund all monies paid to date."
I got another letter from them today saying I did not file a hardship petition with them, SallieMae.
I am at my wits end with this. They have non-attorneys sending out these letters and it seems they are not reading the discharge. Can someone offer advice?
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