just filed ch.13, sallie mae transferred loans to codebtor

[ErraticThinker]

i'm new on this forum, been looking around but just made an account, so sorry if this isn't posted in the right place.

So i was originally in a ch 7 but was forced into a ch13. waiting for my 341 meeting. my mom is a codebtor, and they called her recently to tell her payment is due at the end of june. I found that odd so i called myself and they told me that once i filed for bankruptcy, my loans were transferred into her name as the co-borrower so now she's responsible for them!

I'm waiting on a call back from my attorney about this, but wondered if anyone here had any experience with it or heard of this happening?

My intention was to pay what i can during my chapter 13, and I definitely don't want my mom to take on this burden. My understanding was that my loans were automatically put into a forbearance during my ch13 and they would accumulate more interest during that time. I also know that they're not dischargeable in most cases, which is fine since I figured it could help me rebuild my credit. Is this a violation of the automatic stay? any help would be greatly appreciated!

[Flamingo]

The problem in your situation is that your mother co-signed on those loans for you. That makes her responsible for their payment if you default and cannot pay them. Since her name is on the account, I am not certain if they can be put into forbearance during your newly filed Chapter 13. Consult with your attorney. Also pull out the paperwork copies as to your student loans that you and your mother signed when they were taken out - there will be information in there as to what will occur if you default on payments and the responsibilities of the co-signer.

[ErraticThinker]

yes, but I was current on my loans. I had heard about that happening in cases where the debtor was behind on payments. They were already going to get their money from me one way or another, but I guess they didn't feel like waiting till my plan was set in motion. My lawyer had told me upon filing that generally they just go into forbearance, and I don't really have to pay them but it's in my interest to since they accumulate interest. I'll be interested to hear what he says about this development.

[Gauche1967]

Sallie Mae needs permission from the court to pursue your co-debtors. Ask your lawyer about preparing a cease and desist letter to Sallie Mae. Are they using your bankruptcy to say the loans are now in default? That was illegal under the old law, talk to your lawyer about the status of per se contract clauses under the new law.

[ErraticThinker]

That's what i thought as well. my lawyer said that since the debts arent dischargeable, and they just go into forebearance during the bk, sallie mae can put it in the codebtors name.

I did get them to put the debts back into my name, and the person we spoke to agreed that they should never have been transferred over in the first place. sallie mae did transfer some of the loans to american student assistance, and placed claims through my ch13. all in all i'm a little more confused, but i'll speak to my lawyer soon. and post on here in case anyone else ever deals with this too. thanks for your advice guys.