Can anyone advise me on a desperate situation?

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Hi everyone - I would really appreciate the expert advice of this community. I have a late 2011 MacBook Pro. In June 2013 I installed Mountain Lion and encrypted using FileVault. All was fine. Two days ago I got a kernel panic and when I tried to restart I got stuck with a prohibitory sign (the computer accepted my login PW, but then got stuck). I tried safe mode, re-setting PRAM, with no luck. When I loaded in verbose mode I got the errno=19. Took it to Apple Store - they worked on it for 2 days with no luck. The computer still accepted my login PW, but when they tried to re-install the OS and it asked for my PW again it didn't recognize it. They also tried using the encryption key to get around the problem with no luck. Right now I have another store having a look but wondered if you experts had any ideas?
Thanks
 
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FileVault is incredibly secure! Your only option is to reformat the Hard Drive, do a clean reinstall of Mountain Lion, and retrieve your data from your backup.
 
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The problem is that your data is encrypted. I don't get the impression from the information you've provided that the hard drive is actually faulty, so the problem isn't getting at the data, it's decrypting it. File Vault is incredibly secure. If you choose to use state of the art encryption, you also need to use state of the art backups!
Something in the bowels of the Mac's data got corrupted, hence the Kernal Panic and prohibitory sign. The problem you have is that the damaged data obviously related to the encryption key. Apple Genius's get far more specialised training than those of us who are not employed directly by Apple. If they can't escalate your problem to somebody who can help you, mere mortals like us are unlikely to be able to solve your problem.
 
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Possible you could migrate the user to another Mac with a working OS. The encryption key should remain the same..

Worth as try!

No Time Machine backup I'm guessing?

Cheers

Mac Lifesaver
 

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