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co-signer on student loans

Date: Thu, 09/27/2012 - 07:40
Submitted by on Thu, 09/27/2012 - 07:40
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I am a co-signer on three student loans for my children which all three went into default due to none payment.It resulted in me the co-signer filing a chapter 13 bankruptcy,because I could not afford the payments along with two mortages and other household expenses.ten percent of the 94,000 balance is being paid through the bankruptcy court.will the remaining balance be discharged from the co-signer and the debtors be persued for the remaining balance or will the co-signer still be held responsible for payment after the bankruptcy plan .It is to my understanding that an amendment was made in 2011pertaining to the title 11 bankruptcy fairness act of 2005.I would greatly appreciate some clarity on this in order to try to prepare for this situation.


Your attorney should have explained the law to you. Student loans, both private and federal are non dischargable under bankrtuptcy. Once your 13 is discharged, your balance with interest will updated and become due in full again. Both you and your children can still be sued as most private loans do sue on a regular basis. Your kids need to step up and start paying on their loans.,

No law has been past to change the dischargability. Even if the law return to what they were, it would require 7 years of being in repayment from the time the loan became due. This would speed up the judgment process for private lenders, meaning they would start filing suit after a year in default and garnish wages/levy bank accounts for a longer period of time before the debt could be discharged.


Submitted by SOAPLADY on Thu, 09/27/2012 - 09:08

SOAPLADY

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