student loan co- signee
Hi everyone.We filed chapter 13 and was confirmed 2 months ago , now we recieved "distribution to creditors notice" and the student loan that i cosigned for my brother was included and will recieve payment even if he (my borther) is current on the payment, I asked our lawyer and he said it has to be included because its still my debt.. is there anyone who has knowledge or feedback on this because it does not sound right because the creditor will recieve to payments and its not even in default...how can it be remove from the distribution????...please help....thanks in advance
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Your lawyer is correct. It is your debt and needed to be listed. The lender had the right to file a claim regardless of the status of the loan and has a right to participate in any distribution. For every penny the creditor gets that penny will be a credit for your brother. However, unless there is a large dividend to your unsecured creditors the amount paid to the lender will probably be inconsequential.
Des. -
thanks, i appreciate it..Comment
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