I have loans from Sallie Mae in a large amount, both federal and private (200k +). My parents co-signed these loans and I was making payments on a partial payment plan in a timely fashion.
Due to issues, my parents recently filed for a Chapter 13. I knew about this, but the fact that they co-signed for my loans escaped our minds. Now, Sallie Mae is aware of this and has put a hold on most of my loans as they are in bankruptcy status - I am only able to repay a few.
Since I am the primary account holder with Sallie Mae and since I am NOT filing for bankruptcy, how does this affect my credit rating and/or how does this have a detrimental effect on me? Speaking to Sallie Mae, they suggest that I try to release the co-signer, but this can only be done after the Chapter 13 has been taken care of. Am I in trouble as far my credit or my future goes? Or will I be okay since I am not the one filing? I am young and don't want the hassles of bad credit to linger with me for the rest of my life. Am I screwed or not?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.