i just filed chp 7 - will my edu loan co-signer get screwed?

[brokeazz]

Hey guys, not sure what to do about this. I don't have the help of an atty. because I filed myself.
I have 2 smaller education loans that my mother co-signed with me back in 1998. I think it's a private lender - "Firstmark"?
anyway, I listed them on my chapter 7 paperwork. I filed a couple of weeks ago, and received a letter fom them today saying I "have the opportunity to reaffirm my obligation to pay this loan". What the hell?
So I am wondering, if I DON'T "Reaffirm my obligation" can they raise the interest rate on my co-signer, or charge some crazy fee due to my discharging this debt?
I've already payed these bastards the entire amount that I originally borrowed but the interest has made it so that I still almost owe the enitre principal balance after all these years! - Wish I could afford an atty. to ask about this!
Thanks!

[HHM]

well, they can certainly go after the co-signer for the balance due, but I don't know if they can raise the interst rate. An interst rate penalty is not that common on student loans in the even to default. However, by filing on these students loans, realize, you have effectively made the co-signer fully liable and completely screwed them.

[brokeazz]

Don't appreciate your judgement

I thought this was supposed to be a suuportive forum, not one where people passed moral judgement on others.

[HHM]

Yes it is, but that also means we try to put things in perspective. Nothing I said was a moral judgment, its merely the "REALITY" of your situation. Granted, my language is a little stong, but I suppose if the co-signer has no problem paying off YOUR student loans, then it's not that big a deal.

If the co-signer defaults, then perhaps there could be a penalty, but so long as the payments are kept current, there shouldn't be any increase in interest rate or penalty fee charged, (but it depends on the fine print of the loan contract)

[HRx]

You definately want to extend co-signers courtesy, by notifying them of your intent to discharge a loan she/he co-signed for you in BK, because thier credit will be jeopordized, and they may be responsible for repaying the loan.

Good Luck!

[FloridaGirl]

Wait, what's all this talk about student loans? I thought those could not be included in BK.

Actually, brokeazz, no one was passing a moral judgment on you. In the title of your thread, you specifically asked if your co-signer would get "screwed." HHM was merely telling you that, yes, they would get "screwed."

[HHM]

Wait, what's all this talk about student loans? I thought those could not be included in BK.

Actually, brokeazz, no one was passing a moral judgment on you. In the title of your thread, you specifically asked if your co-signer would get "screwed." HHM was merely telling you that, yes, they would get "screwed."

Generally that is correct, I am guessing the student loans in question are "private" students loans and therefore subject to discharge in bankruptcy. You generally don't need a co-signer for federally backed student loans.

[HRx]

Wait, what's all this talk about student loans? I thought those could not be included in BK.

As I understood it, all student loans, government or private, where exempt from being discharged under Chp7 BK, if less than 75% of the loan has been repaid, if the loan doesnt meet a specific level of maturity.

But to answer your question, there were one or two members on this forum that had thier student loans discharged under Chp7.

-Todd

[NCgirl]

Todd wrote:
> But to answer your question, there were one or two members on this forum that had > thier student loans discharged under Chp7.

I have just signed up to the forum. Can you perhaps point me to where this was discussed before?

[Minnymouth]

Go under "search" at the top of this forum, key in "student loan" and it will bring up all thread where student loans have been discussed.

Happy reading!!!!

Minny