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 May I mailed the bankruptcy information to Sallie Mae and they said they did not receive them. I mailed them the documents a total of five times before the acknowledged receipt.
I received 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 judgment 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 judgments 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 liabilities 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 or do not understand the discharge. Either way they are trying to do what only an appeals court can do that being reverse a bankruptcy discharge.
Has anyone out there experienced this or know of someone who has?
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