QUESTION
How will my parents bankruptcy affect me?
Asked on Jul 11th, 2011 on Bankruptcy - California
More details to this question:
When I was in college my dad cosigned on a private student loan. Now for his own reasons he and my mom plan to file ch 13 bankruptcy, and I want to know how this can or will affect my credit. Will I be able to get new loans while they're in repayment (I want to go back to school)? Will I be able to buy a new home while they're in repayment?
10 ANSWERS
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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As long as you are not relying on their credit, it should not affect your situation. This is a question that they could ask their bankruptcy lawyer to explain to them and you as often the exact answer will depend on the specific circumstances that are present.
Answered on Jul 13th, 2011 at 10:42 AM
Your parents' bankruptcy does not affect your credit in any way.
Answered on Jul 13th, 2011 at 9:35 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When your parents file bankruptcy it doesn't affect you and certainly doesn't go on your credit report. If they have co-signed for student loans you are still obligated. There is no discrimination on account of bankruptcy for someone who files bankruptcy. This is true for someone whose parents filed bankruptcy because there is no relationship between their bankruptcy and your creditworthiness.
Answered on Jul 12th, 2011 at 3:08 PM
Glen Edward Ashman
There is a co-debtor stay that may protect you in a Chapter 13, depending on their plan, but the payment status of loans may affect your ability to get certain types of loans. Your credit may be impacted depending on how their case goes.
Answered on Jul 12th, 2011 at 2:26 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Your parents' bankrutpcy will not affect your credit so long as you continue to make timely payments on the student loans. The Chapter 13 Plan will have to state that you will make the student loan payments directly.
Answered on Jul 12th, 2011 at 2:25 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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As long as you stay up to date on any obligations with your name on them, you should be fine.
Answered on Jul 12th, 2011 at 1:06 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Their bankruptcy case should not affect you. In fact, even though they would list the loan they co-signed for you as a debt in their bankruptcy case, they will not be able to discharge it unless they are undergoing an extremely difficult situation (such as some physical or mental ailment that prevents one or both from earning more than just the amount they need to support themselves). You would still be liable under the student loan obligation and their bankruptcy will not affect your ability to buy a new home.
Answered on Jul 12th, 2011 at 11:56 AM
James T. Burns
Your parents' bankruptcy filing will not have any impact on your credit score. However, the bankruptcy will have an impact on the credit score of your parents and as a result they will likely not be able to co-sign on anymore of your debts. The bankruptcy will not impact your ability to obtain student loans, although without a co-signor your student loans may now be subject to less favorable terms (i.e. higher interest rate). Similarly, their bankruptcy will not impact your ability to obtain a home mortgage, but keep in mind that your parents will likely not be able to co-sign a home loan for you.
Answered on Jul 12th, 2011 at 11:53 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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They'll be paying those through the Chapter 13, I believe, if they've already been paying. If they don't, the debt is yours. If you've been paying, then there's no effect because you'll continue to pay. Bankrupcty isn't a reason to deny further loans, as student loans aren't dischargeable.
Answered on Jul 12th, 2011 at 11:48 AM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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Their bankruptcy will not affect your credit. Your dad will not be able to discharge the student loan. As long as you are current you are fine. I'm sure your dad will not be able to co-sign for another student loan in the future.
Answered on Jul 12th, 2011 at 11:39 AM