Protecting cosigner?
Date: Sun, 07/31/2011 - 08:36
That said, I have a cosigner on one of my private student loans. That debt isn't late, delinquent, defaulted.. etc.. yet. It's the one payment I've been beg/borrowing to pay regardless because of the cosigner.
What happens when I actually do the bankruptcy? Does it default right then and there? What will it do to my cosigner's credit and is there anything that can be done to keep the loan current and not hurt the cosigner?
Hi rpeder, Welcome to the forums! Not only your student loans
Hi rpeder,
Welcome to the forums!
Not only your student loans, but all of the debts that you are going to include in bankruptcy will be listed as "included in bankruptcy" on your credit reports. If you haven't defaulted on any of the loans or other debt accounts till now, the account status is not listed as in default.
If you file bankruptcy, it will affect on the co-signers credit too. Since the co-signers are legally responsible for the debt, the creditors and lenders will turn to him/her for the payments. So, it is always better to discuss about your decision with the co-signer and inform him/her about your possibility to file bankruptcy. This is especially true if you file bankruptcy under Chapter 7. However, if you file bankruptcy under Cheater 13, your co-signer may not have to face many problems regarding the debts.
But, can you please tell us as to what exactly is your debt situation like and how much deep are you into debt?
Hope this helps,
Marvel Becks
Student loans can't be discharged through bankruptcy, specially
Student loans can't be discharged through bankruptcy, specially the federal ones. I would advise you to contact your lender and explain your financial situation to him/her. Work out a payment arrangement with him/her. You can also take advantage of student loan consolidation to pay off the loan comfortably.
Hi, Yes I too agree with Good Nelly! Student loans can't be dis
Hi,
Yes I too agree with Good Nelly! Student loans can't be discharged through bankruptcy, especially the federal ones. Instead of this, you can get them consolidated. If you want to know more on federal student loan consolidation, you may visit
"http://www.loanconsolidation.ed.gov/"
Yes, I agree too with Nelly and Amy. The federal student loans c
Yes, I agree too with Nelly and Amy. The federal student loans cannot be included in or discharged through bankruptcy. But, there are options through which you may be able to include the private student loans in bankruptcy. You will have to prove that making payments on the student loan is going to create undue hardship for you and your family. For this, you will be required to file a separate motion with the bankruptcy court.
Thanks,
Marvel Becks