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
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
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