Posted on: 04th Oct, 2012 12:43 am
I filed for Bankruptcy early this year. The process went pretty well. I hold two Student Loans, one through Direct Loans, another through Citibank. I took out the Citibank loan in 2001 and had approximately $5,200 remaining. The Direct Loans was a Parent Loan for my daughter, at about $46,000. These were included in the petition. However, I know that student loans are not discharged in bankruptcy filing. So, I continued to pay both loans - both of which were never were past due. Payments were sent electronically (on-time), to both lenders through my bank. Payments continue to go to both lenders. There appears to be no issues with the Direct Loan, I am receiving statements from them and payments are being applied. However, Citibank sent me my last statement in Feb and I have now started receiving collection letters regarding that loan. Why Citibank was able to charge-off a loan that was not past due?
Hi Guest,
If the student loans has been paid on time, then they shouldn't charge off the loan and assign it to collections. Nevertheless, you can contact Citibank and request them to call off the account from collections and try to pay off the debts normally.
Thanks,
Jerry
If the student loans has been paid on time, then they shouldn't charge off the loan and assign it to collections. Nevertheless, you can contact Citibank and request them to call off the account from collections and try to pay off the debts normally.
Thanks,
Jerry
Welcome Guest,
It is strange enough that the lender has charged off the debt when the account was current. Negotiating with the bank is the only option left with you. You should start negotiating with the bank and try to sort out the matter.
It is strange enough that the lender has charged off the debt when the account was current. Negotiating with the bank is the only option left with you. You should start negotiating with the bank and try to sort out the matter.