Private student loans & Ch 7 - Read this before you file if you have a cosigner

[gml120]

I had a private student loan with KeyBank which went into chargeoff due to chap 7. Neither I or my cosigner was notified before chargeoff and they would not under any circumstances allow me or her to rectify the situation - even though I was told by them I was in a bankruptcy stay. After MONTHS of trying to find out why this happened, I received a letter today with the explanation. From the report generated by KeyBank concerning my complaint to the OCC about the problem:
"However, had you listed the cosigner on the loan, [name of cosigner], as codebtor on your bankruptcy schedule for the loan, they would have been notified by this office (KeyBank) concerning their obligation to repay the loan before it was charged off."

I don't know if this is an isolated case but make sure your bk lawyer knows something about private student loans before you file.

[justbroke]

Yes, you should always property place Co-Debtors on Schedule H! I'm sure that people forget often, but the attorney only knows what you tell them.

[gml120]

He was informed, and just plain failed to do it.

[justbroke]

Wow. Sorry to read that. I'm starting to read about attorneys "forgetting" to schedule things, all too often now.

[gml120]

After reading that again, I think I misunderstood the meaning. I thought it meant that the co-signer would have been notified of pending default, but upon further research, I concluded that it actually meant that my cosigner would have been notified of my ch 7 - which doesn't matter at all since they knew already and the same outcome would have taken place. Unfortunately.