If my co-signer is filing bankruptcy where does that leave me? 14 Answers as of June 24, 2015

My parents are filing for bankruptcy. They co-signed on a couple of my school loans. The status of the loans is currently in bankruptcy. I am unable to make payments. Will I still owe the balance?

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GARCIA & GONZALES, P.C. | Richard N. Gonzales
Student loans are typically not dischargeable. There is a "hardship" exception. Meet with a lawyer face to face to see what you are up against.
Answer Applies to: Colorado
Replied: 6/24/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Yes, you will still owe the balance of the loan. You should be able to make payments on the loans even though the cosigner is in bankruptcy. Depending upon the type of bankruptcy that was filed the lender may not be able bill you, but you can voluntarily pay.
Answer Applies to: Colorado
Replied: 6/22/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes you and your co-signor are still liable, student loans are not dischargeable in bankruptcy.
Answer Applies to: New York
Replied: 6/22/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
If your co-signer files bankruptcy, you typically become 100% responsible for paying the debt. That is why creditors require a co-signer. However, a student loan typically is not discharged in a bankruptcy, so technically, your parents still owe the debt as well. But it is the lender?s choice as to which party to seek to collect from, and my best guess is the creditor will come to you first for payment.
Answer Applies to: Nevada
Replied: 6/19/2015
Stephens Gourley & Bywater | David A. Stephens
Your parents may not be able to discharge the student loans. If they do, you will still owe them.
Answer Applies to: Nevada
Replied: 6/19/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes and so may they.
    Answer Applies to: Michigan
    Replied: 6/19/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The creditor can pursue the non-filing co-signer UNLESS the debtors are in a Chapter 13 and have proposed a Plan which will provide for full repayment to the creditor in question. See if your parents will authorize their lawyer to discuss matters with you. He or she my be able to come up wit something or other resourceful to help protect you. (Here's a freebie: let them submit a Plan which provides not for total repayment of the student loans, but only for their paying under the Plan the monthly payments you would have to make. This can feel like an acceptable variation on a 100% repayment, since it is 100% of what is due during the months of the Ch. 13 Plan (ether 36 or 6 months).
    Answer Applies to: Wisconsin
    Replied: 6/19/2015
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    Yes. It does not help you at all. Student loans cannot be bankrupted by you or them normally.
    Answer Applies to: Alabama
    Replied: 6/19/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, you will. Once a discharge is entered you will be the only one obligated to pay them.
    Answer Applies to: California
    Replied: 6/19/2015
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    Student loans are not dischargeable in bankruptcy generally. You will still be responsible for the balance. There is no reason that you cannot make payments during the pendency of the bankruptcy.
    Answer Applies to: Kentucky
    Replied: 6/19/2015
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    Still on the hook.
    Answer Applies to: Massachusetts
    Replied: 6/19/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Need details but you are most probably liable for the full amount.
    Answer Applies to: Michigan
    Replied: 6/19/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Yes, you'll still owe the balance. However, student loans are not dischargeable, so your parents will still be cosigners.
    Answer Applies to: Ohio
    Replied: 6/19/2015
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    Yes, you are still liable for the student loan debt. Your parents will also still be liable unless they get a "hardship" discharge.
    Answer Applies to: Georgia
    Replied: 6/19/2015
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