QUESTION
Why are we paying for these loans if my son is the responsible party and they are not in default?
Asked on Feb 08th, 2013 on Bankruptcy - Michigan
More details to this question:
I co-signed for my son on his student loans. My husband and I filed bankruptcy a couple of years later. Our attorney included the student loans on our bankruptcy since I co-signed which we just now realized. My son is still in school, so the loans are not in default.
12 ANSWERS
Your lawyer did the right thing. You are required to list all of your debts and creditors, even if they are not in default.
Answered on Feb 12th, 2013 at 6:54 PM
Richard hirsh
Typically, most educational loans are not dischargeable and if you co-signed for them you will remain responsible after bankruptcy. However, you should not have to pay until the date for payment comes as set forth in the loan documents.
Answered on Feb 11th, 2013 at 10:39 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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You must include all debts when you file bankruptcy, even ones you are only co-signors.
Answered on Feb 11th, 2013 at 6:57 PM
The student loans you stated were placed into bankruptcy are not dis chargeable since they are a government student loan. There are very few exceptions that student loans are discharge gable in bankruptcy. In addition, based on the information provided, even if they were discharged, you were merely the co-signer to the student loan, your son will still be responsible for the loan since you filed bankruptcy and your son did not.
Answered on Feb 11th, 2013 at 1:14 AM
A co-signer on any loan is equally responsible for paying the loan. Student loans are nearly impossible to eliminate through bankruptcy & if you had taken the steps to eliminate your responsibility for these debts, I am sure you would remember it, as it is quite an ordeal. Many times, student loans can be deferred if the student is still in school, but can continue to grow and grow with interest. Has your son applied for a deferral?
Answered on Feb 10th, 2013 at 11:07 PM
Donald C. McLeaish
Student loans are NOT discharged in bankruptcy...hence, you must pay if your son cannot..according to the terms of the loan..talk to your bankruptcy lawyer...who should have made that clear.
Answered on Feb 10th, 2013 at 10:37 PM
I am having some trouble understanding your question. Your attorney included the loans because he was legally obligated to do so. When you file, you must disclose all of your debt, not just the ones in default. Are you in a 13. That is the only way I can see that you would be paying for loans that are not in default.? If you are not in a 13, you are probably still liable to pay for the student loans if your son defaults, because student loans are generally not dis chargeable. Hope this helps clarify things.
Answered on Feb 10th, 2013 at 10:11 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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Student loans are generally not discharged in Bankruptcy. If an Adversary Proceeding wasn't filed, they were not discharged. Listing all debts is mandatory. It's not a list of debts you want discharged, it's just a list of your debts. Certain student loans have no grace period for the parents. I know a Direct PLUS loan is one of these.
Answered on Feb 10th, 2013 at 8:10 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You need to speak to your attorney. You are required to include all debts, so he couldn't exclude them. Did you not review the petition with him? It is likely you're not paying anything to the student loans.
Answered on Feb 08th, 2013 at 7:57 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Under most situations, student loans are NOT dischargeable in a bankruptcy case.
Answered on Feb 08th, 2013 at 7:56 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Because your attorney did as the law required. All debts must be listed in the bankruptcy. These student loans are debts, even though your son is still in school. I am sad that you do not trust your attorney to call and ask this question.
Answered on Feb 08th, 2013 at 7:56 PM
Student loans are not dischargeable in bankruptcy (without a hardship discharge being issued), whether you were the signer or the cosigner.
Answered on Feb 08th, 2013 at 7:56 PM