Co-signers and BK

[Dirk Squarejaw]

While I was married, I was pestered by my ex-wife about my cc debt. Cool....whatever. So I got a loan from MBNA through the NEA (National Education Association) at a high rate. Now, BofA owns the loan and my ex-wife is on the loan.

Moral debate aside, I am planning on filing in the next few months and I know BofA will go after her for the money. I would have felt bad doing this a couple months ago, but she has been pulling some really dumb "high-school drama"-style stunts lately causing friction between my friends and I, her abusive on-again/off-again boyfriend that she cheated with on me and I, our parents and I (I was on good terms with her mom who is still friends with my parents), etc. She is one of these people that just loves to be the victim and collect peoples sympathy with her sob stories. To be quite honest I am not going to feel one bit of guilt when they go after her for the money.

However, will she have any recourse at all or will it all be on her and nothing she can do about it?

[kiddles]

Depends a great deal on he terms of the divore settlement - if you took this debt, and agreed to "hold her harmless" (language used here, might be phrased differently in yours), then yes, she does have recourse.

Under the terms of the divorce settlement, she could then sue you for whatever she had to pa on that debt, plus her attoney costs, etc.

BUT (isn't there always a "but" in legal matters?) some BK courts have ruled that the BK also discharges the potential debt you'd have to her under the settlement with your ex.

Be sure to talk wo your BK attorney about this, and find out what is and isn't possible where you are.

[BassBoy]

My understanding is with a co-signer, the co-signer will be responsible for the debt. What type of organization is NEA? I'm guessing this is not a student loan, but a private loan.

[Dirk Squarejaw]

double-post

[Dirk Squarejaw]

What type of organization is NEA? I'm guessing this is not a student loan, but a private loan.

NEA is just an organization and probably gets some sort of kickback from MBNA for each loan that is applied for through them. It is the same "line of credit" that MBNA offers through regular snail-mail offers.

[keepmine]

What does your divorce decree say about who is responsible for paying that debt? Under BK reform, debts assigned to a party in a divorce decree might not be discharged.
Have you spoken with a bk lawyer yet?

[Dirk Squarejaw]

What does your divorce decree say about who is responsible for paying that debt? Under BK reform, debts assigned to a party in a divorce decree might not be discharged.
Have you spoken with a bk lawyer yet?

I haven't spoken to one yet. I've got a little time to go due to purchases/cash-advances that were used to replace things that she took like washer/dryer, etc. I'm going to start looking around fall-break at school. I'm sure they'll be able to tell me what to expect. This could really suck because this loan is one of the main reasons I'm thinking about BK. Its $425/mo and I am barely scraping by each month but after some of my extra money from summer work dries up in a month or so, I'll be well in the hole each month.

When we filed for divorce, we just used forms we found online and divided things up on the paperwork. I believe that it does state something about holdering the other person harmless.