QUESTION
Can I be made the principal signer in my ex-wife's student loan after she files for bankruptcy?
Asked on Oct 06th, 2014 on Bankruptcy - Michigan
More details to this question:
My ex-wife has filed for bankruptcy and was the principal signer on a student loan which I cosigned. They have now arbitrarily made me the principal signer and taken her off the loan even though the loan is not a dischargeable item. Is this legal?
5 ANSWERS
Derek W. Freeman
Whether you are the principal or not, you are still both equally liable for the debt. So nothing has really changed - you're both still on the hook, and they can still collect from either of you.
Answered on Oct 08th, 2014 at 4:21 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Did she file for chapter 7 or chapter 13? They can't collect from you as long as her bankruptcy is ongoing and a Chapter 13 takes up to 5 years. Both you and she are still liable on the loan. How was this handled in your divorce/dissolution decree/agreement? If the divorce decree makes this her debt, then you can sue her to take over all the payments. If your divorce decree doesn't address the student loan debt, congratulations, you saved a couple hundred bucks by not using a lawyer and it'll now cost you thousands.
Answered on Oct 07th, 2014 at 11:41 AM
There is no actual difference between a principal signer and a co-signer under the law. Any party that signs a loan is responsible for paying it. This is a distinction without a difference.
Answered on Oct 07th, 2014 at 11:40 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I need details but as a co-signer you are equally liable for the debt.
Answered on Oct 07th, 2014 at 10:01 AM