QUESTION
Am I screwed if the co-signor on a private student loan filed for bankruptcy?
Asked on Jun 13th, 2013 on Bankruptcy - North Carolina
More details to this question:
I was informed today that my stepfather, a co-signor on a private student loan from around ten years ago, had filed for bankruptcy. I then discovered that my lender had ceased taking out my automatic payments for the past two months. My mother informed me that they had been contacted by a collection agency attempting to get my stepfather to pay the balance on the loan because his bankruptcy had triggered a default clause in the loan. I have never missed a payment or been late, yet I am now being told that my credit is likely ruined unless I come up with nearly 15,000 or agree to an absurd interest rate and a relatively short payment plan, neither of which I can afford.
2 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
If you signed the note you are obligated.
Answered on Jun 14th, 2013 at 11:24 AM
Family Law Attorney serving Durham, NC
at
Morelos Law Firm
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That is very unfortunate but yes, if that is in fact something that was written into the original contract that you signed, then there is usually not much you can argue about something you voluntarily signed. But that doesn't mean it's not worth writing a formal letter (certified mail recommended) stating your reasonable position that you have been the one currently paying and in fact never late and to simply remove from collections and go back to normal. Unfortunately, you may need to get an attorney involved to get some real attention, now that it's in collections.
Answered on Jun 14th, 2013 at 10:36 AM