Question on co-signed student loan

[imtryingtho]

I have two questions on student loans. I know they can’t be discharged. Also I put out this question to our attorney but I’m waiting for a response.

I have 3 student loans. 1 is a federal loan in my name when I was considered “independent.” 1 is a private loan with Wells Fargo that my dad co-signed for. The last is a federal loan in my dad’s name entirely that doesn’t even show up on my credit report because I was considered a dependent the years I needed it. I have been responsible for these loans since I took them out and it was agreed my parents would not have to pay them.

Questions:
1- will the Wells Fargo loan my dad co-signed on have some type of mark on HIS credit report after we file like “IIB”?

2- what is the likelihood the trustee will allow the loan not in my name to be considered as a reasonable expense each month? If they see history of all payments coming from us will that help our case of including it as an expense?

My parents don’t know we are filing and if it’s going to impact their credit report in any way, I want to give them a heads up. However, my mother has loose lips and I would rather not disclose to her unless I have to.

thanks in advance!

[justbroke]

1- will the Wells Fargo loan my dad co-signed on have some type of mark on HIS credit report after we file like “IIB”?

No. He is not affected by your bankruptcy. There should be no indication of your bankruptcy on his credit report even for shared/joint accounts. (I know this from experience with two joint accounts. Mine report IIB and the other person has no indication of the status.)

2- what is the likelihood the trustee will allow the loan not in my name to be considered as a reasonable expense each month? If they see history of all payments coming from us will that help our case of including it as an expense?

Student loans are not a reasonable expense in bankruptcy. They go into deferment. A Chapter 13, however, will pay on the student loans out of the "unsecured pool" money which consists of your disposable monthly income. The student loans would receive a "pro rata" share of that unsecured pool. The amount paid to the student loans may be insufficient to even cover the accruing interest.

If you're in a Chapter 13 and have student loans, you may need to figure out a way to make sure something is paid to minimally cover the interest payments. Just so that you don't come out from the Chapter 13 owing even more.

[imtryingtho]

justbroke thank you! So they would let me defer the one in my dad’s name as well even though it’s not on my credit report?

We’ve never been able to defer it using our own income information, it always had to be done with his. Luckily we are deferring through covid relief right now.

[justbroke]

justbroke thank you! So they would let me defer the one in my dad’s name as well even though it’s not on my credit report?

No, not the one in your dad's name since your dad is not a debtor in the bankruptcy.

We’ve never been able to defer it using our own income information, it always had to be done with his. Luckily we are deferring through covid relief right now.

Yes, that makes sense. That is because it is not your loan, it is his loan.