Chapter 7 private student loans and cosigners


Chapter 7 private student loans and cosigners

Letter to “Ask Leon”

My wife and I recently filed chapter 7 in Georgia, we are awaiting our discharge which we have been told will be here mid February. My father in law has recently been contacted by citiassit in regards to a private student loan he cosigned on. The loans has been in deferment while my wife continued her education, in fact it doesn’t leave deferment until the end of the month, before it went into deferment there were no late payments at all. They are now claiming that since the two of us filed bankruptcy all our credit is default and they will no longer speak to us and expect my father in law to pay off the loan since he was the cosigner. My wife and I are very confused by this since the loan wasn’t able to be discharged why go to the cosigner?

Leon Says…

I believe that the loan can still be paid by the guarantor according to it’s normal terms. Your father in law should insist on speaking with folks higher up at the bank, immediately. If it’s in deferment, then it ought to stay that way, and then go into a normal payment cycle after that. I think he should consult his own attorney for advice if this does not achieve immediate satisfactory results.

By |2012-10-09T06:08:47+00:00October 9th, 2012|bankruptcy-faq, Financial|0 Comments
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