Automaticall into default?

[TeacherMomma]

After one files Ch7, do their private loans (Sallie Mae/Aes) go into automatic default? On my prom notes it says that is a reason your loan could go into default, and I don't WANT them to go into default as I plan to keep paying as they are nondischargable anyhow - no choice. But I have co-borrowers who I do not want to affect. I have been reading here and have read some strange things with co-debtors. But if the loans do NOT go into default just by filing BK, then my continued payments should keep the co-debtor out of the problems, right? I read here about interest accruing for those that do not pay during their BK process - and that the payments just start back up with interest after it is discharged - so I assume on those they did not go into default. I have federal loans, but I am speaking of private in this post.

Anyone deal with AES or Sallie Mae private loans and have them send you directly to default for filing (I am current right now and will stay that way - that is why I am filing, so I can continue to afford the student loans that keep going up).

[mgmadara]

I had student loans with both Sallie Mae and AES when we filed chapter 7. The loans automatically went into a 6 month deferment when I filed. I did not make any payments during our bankruptcy and payments continued as usual when the deferment was over. However, I filed in 2005 under the old law and I didn't have a co-signer so things may be a bit different in your case.

[jennordhavn]

I have my Stafford loans consolidated through Sallie Mae as well as one private loan that was co-signed by my parents. The Staffords were already in hardship deferment when I filed, but I continued to pay on the private loan since I have a cosigner and didn't want my parents' credit affected. I think if there is no cosigner, it would automatically go into deferment until discharge.

Just a warning though, I sent my first payment after filing to the payment address on their website and wrote my account number on the check. They cashed my check. Two weeks later I get an email (to my Mom) saying that my private loan is late. My Mom calls me later that night and says she got a notice saying it was late as well. So I called Sallie Mae and apparently when you file bankruptcy and there is a cosigner, the loan automatically goes into the cosigner's name until the discharge (which I knew), HOWEVER they also change the account number! So they had applied my payment to my Stafford loans rather than my private loan (and of course didn't notify me, even though I had written my private loan account number on the check). So they did go ahead and transfer the payment to the correct loan, but until I'm discharged, I need to write the new account number on the check. I asked what happens after it is discharged, and she said it goes back to the old account number. She wouldn't even give me the new account number without first calling my Mom to verify that is was ok for her to speak to me about MY loan.....lol.