Can I really be penalized if my co-signer files for bankruptcy, but I have been making my payments as scheduled?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can I really be penalized if my co-signer files for bankruptcy, but I have been making my payments as scheduled?
My dad co-signed for my undergrad loans. When I graduated I made my payments in a timely manner. I recently went back to school so my undergrad loans were deferred but I was still making monthly interest only payments. My dad filed for Chapter 13 but had to withdraw the petition because he was laid off from work in the process and would be unable to meet any agreed upon payments. Now a collection agency is calling me stating that my loans had been taken over by a new lender and that I need to pay it off now. They are saying there is no way for them to set up a long term payment plan.
Asked on September 28, 2011 under Bankruptcy Law, North Carolina
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
Your dad's Chapter 13 would not have affected a student loan in any event, even if the case wasn't eventually "withdrawn" as you state. It sounds like something else is going on here. Why would this be assigned to a collection agency if you are current with the payments? And if your loan is deferred (and they granted the deferrment) I similarly don't understand how it can be assigned to a collector.
This is really an issue of contract and other state law, perhaps in addition to specialized student loan laws. I don't think it has anything to do with bankruptcy.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
Your dad's Chapter 13 would not have affected a student loan in any event, even if the case wasn't eventually "withdrawn" as you state. It sounds like something else is going on here. Why would this be assigned to a collection agency if you are current with the payments? And if your loan is deferred (and they granted the deferrment) I similarly don't understand how it can be assigned to a collector.
This is really an issue of contract and other state law, perhaps in addition to specialized student loan laws. I don't think it has anything to do with bankruptcy.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://bklaw.com/bankruptcy-blog/
Follow Me on Twitter: @bklawr
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.