I Think My Student Loan Will Be Cancelled By My Bankruptcy. – Decker

“Dear Steve,

I am in the process of filing for bankrucpty. It is to be ofically discharged next week. I have a student loan that I was told could not be discharged, however the loan center is reporting to the credit companies that my loan is in forbearance and included in the bankrucpty. I was told by the attroney at the start of the bankrucpty that I would need to keep paying on the student loan, but it would be a good thing because it would help to reestablish my credit. But the company is reporting that it is in bankrucpty and in forebearance.

My question is, how do I get my student loan company to report that my payments are on time and not in forebearance so that I can improve my credit record?


Dear Decker,

Unless you filed a Chapter 11 bankruptcy and entered into an adversarial proceeding to attempt to get your student loan discharged as an undue hardship, your student loan will survive your bankruptcy and you better make damn sure you are making your payments as agreed.

What it says on your credit report is irrelevant. The most important part is what the student loan lender is expecting from you. Call the lender and make sure you are making your payments according to their repayment schedule.

If you are making payments and your loan is not in forbearance then you can dispute that entry with each of the credit bureaus reporting it and they will in turn contact the lender to confirm your current status.

But to rebuild credit faster you are going to need to get a secured credit card and use it and pay the bill on time. Unsecured credit will go further to rebuild credit than a student loan alone will.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode

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