Do preferred creditor rules apply to cosigned private/alternative student loans?

[Damian80]

I've been considering filing for Chapter 7 and doing research into what's involved over the last few months. I have a question about private student loans and how making payments on them prior to filing relates to preferred creditor rules. I have private loans through Sallie Mae on which my aunt is cosigned. We've been making the monthly payments since October 2008. Since student loans are not dischargeable except in extreme circumstances and there is a cosigner involved, I'm wondering if I have to worry about the bankruptcy court considering Sallie Mae a preferred creditor. This is about the only complication to my case that I can think of. Other than that, it would be a simple no asset Chapter 7 case.

Also, from reading other threads in this forum, I know I can expect Sallie Mae to lock me out of online access while my bankruptcy case is open. Would my aunt, as the cosigner, still be able to make payments?

Thanks for any input.

[HHM]

Nope, not preference issue.

At most, there will be a 90 day look back (not the 1 year for insiders), but if you are making the normal payments, no issue.

[jribe]

because they are non dischargeable- there will be no issue with payments made.

I've been considering filing for Chapter 7 and doing research into what's involved over the last few months. I have a question about private student loans and how making payments on them prior to filing relates to preferred creditor rules. I have private loans through Sallie Mae on which my aunt is cosigned. We've been making the monthly payments since October 2008. Since student loans are not dischargeable except in extreme circumstances and there is a cosigner involved, I'm wondering if I have to worry about the bankruptcy court considering Sallie Mae a preferred creditor. This is about the only complication to my case that I can think of. Other than that, it would be a simple no asset Chapter 7 case.

Also, from reading other threads in this forum, I know I can expect Sallie Mae to lock me out of online access while my bankruptcy case is open. Would my aunt, as the cosigner, still be able to make payments?

Thanks for any input.

[Damian80]

Thanks for the quick response guys. It's a relief to know that.

And jribe, good luck on Monday. Let us know how it goes.