Co Signer On Student Loan - Primary considering bankruptcy

[cthies]

We are a cosigner on our daughters student loan. She has defaulted on the loan, her car (also a cosigner) and her Visa (also a cosigner). We paid almost $25K to payoff the car and visa but she is now thinking bankruptcy to fix the rest of her debt. We know student loans are not normally discargable and I do not think she will win that argument in court. However....

DOES ANYONE know how we may be able to get off her student loan as the cosigners BEFORE she files bankruptcy???

We DO NOT want to pay the $30K+ owed on her loan, we have pretty much stoped all communication with her and she burned the bridges with us and alot of other people..... We just want a way out before she ruins our life and credit any further.

Thanks for any response

[miss puff]

DOES ANYONE know how we may be able to get off her student loan as the cosigners BEFORE she files bankruptcy???

She could get an unsecured loan if she qualifies and pay them off herself. I am thinking that might be the only way.
we have pretty much stoped all communication with her and she burned the bridges with us and alot of other people..... We just want a way out before she ruins our life and credit any further.

You are talking about your daughter here? Is there some huge circumstance that has made her unable to pay her bills? I know you being a cosigner for her was very generous on your part but you think she's ruining your life because she is not paying on them? hmmppf
Thanks for any response

Sorry, I don't know your story, just think family should ALWAYS stick together, no matter what.

[cthies]

You would think family would not do that but it happens....

NO, she can not get a unsecured loan, she could not get 5 cents to buy a bananna.

Just hoping someone out there knows a magic process to get out of this before she sinks us too.

[miss puff]

If she files bankruptcy, it doesn't go on your credit so it shouldn't hurt your credit. You will however be responsible for the debt. Is she working? Could she pay you back eventually?

[miss puff]

p.s. Just read something on forbearence. Could that work for you?

[cthies]

None of that is an option....

She wont pay it, refuses to pay it and there is nothing we can do to make her.

Sort of like getting a blood from a stone.

We may have to do the 24 months of payments then demand a cosigner release.... Just did not want to do that.

[cthies]

Already done that - 4 times!!!!

Cant do it anymore. Loan already in default 150+ days

[lrprn]

Already done that - 4 times!!!!

Cant do it anymore. Loan already in default 150+ days

This is a really tough situation, cthies. I'm so sorry that you have found yourselves where no parent ever wants to find themselves.

You are 100% correct that if your daughter defaults on her student loans and you are the co-signer, if she files bankruptcy then you become responsible for paying the debt. And you are also correct that if you don't pay the debt, the lender will come after you in every legal way possible plus it could ruin your credit to boot.

Can a co-signer who has already signed the loan papers now somehow "un-sign" themselves? I don't believe so, but you really need to talk with an attorney who knows about debt and collection laws to find out just what your options are in this situation. To find one, you can check with the state or local bar association, or if you have a lawyer friend or acquaintance, ask for who they would suggest you contact. Also Lawyers.com at www.lawyers.com has a good search tool to find lawyers by specialty in your area.

Good luck, and I hope your family finds some peace soon.