Dont't understand

[srjjames]

I filed chapter 13 in January 2012. I filed mainly to get some relief from my private students loans. The payments went form 400.00 to 800.00 to over 1000 a month. My mom was a cosigner on my loans. She was listed in the bankruptcy because she cosigned. She went to purchase a car today. They ran her credit. Her score is 805, but they are saying that she's deliquent on student loan payments of 2200. (My payments) I faxed the finance department my bankruptcy papers, they called the collection agency and they said that the loan was deliquent. How can this be if that was put into my plan. Can someone explain this to me?

[DebtEnder]

If they can't get payment from you then they are allowed to request payment (and report and sue as needed) from those that co-signed for it. Your BK only protects you not people that co-signed unless they too filed BK.

[srjjames]

I was told that being that I filed chapter 13 and not 7 that a stay was put on the cosigner.

[justbroke]

There is a co-debtor stay, but that is only on the collection process. Perhaps you can get your attorney to explain it to the finance department that the loan is in deferment and not "collections". Did you go into arrears before filing? Was a collection agency already assigned before you filed? I might contact my attorney because this reads -- at least on first glimpse -- that this could be a violation of the co-debtor stay. Any act to collect, which would be sending it to collections, could be considered contempt of court for violating the stay.

Your mom could also try other creditors for financing. Did she only go through the dealership? Has she tried her own bank or "credit union"?

[srjjames]

There is a co-debtor stay, but that is only on the collection process. Perhaps you can get your attorney to explain it to the finance department that the loan is in deferment and not "collections". Did you go into arrears before filing? Was a collection agency already assigned before you filed? I might contact my attorney because this reads -- at least on first glimpse -- that this could be a violation of the co-debtor stay. Any act to collect, which would be sending it to collections, could be considered contempt of court for violating the stay.

Your mom could also try other creditors for financing. Did she only go through the dealership? Has she tried her own bank or "credit union"?

Prior to filing bankruptcy private student loan was in past due. It was transferred to a few collection agencies. The last one was with a law firm. I was under the impression that since
They were past due before I filed then the past due amounts would be included in the plan. I thinks
She was financing with the dealership because she was leasing. The finance manager called
The collection agency and they said they tried to
Collect the past due but we refused to pay. Shouldn't this past due have gone in the bankruptcy also? I was thinking that Mabey i forgot to include them in the plan
Because it did go to more than one company or they were not aware that I filed chapter 13.

[justbroke]

I would just tell the dealership that it's not in "collections" because it is in deferment and that your mother is a co-signer and not obligated to pay anything at this time. The dealership should be calling the owner of the debt, not the old collection agency.. if they should even be doing that. You didn't say that it was "sold" to a junk debt buyer, but was only assigned to a collection agency. If that's the case, I'd refer back to the lender who gave you the private student loan.f

[srjjames]

Thanks for your quick reply. I will find out more tomorrow. I feel so bad that my mom is going through this. I hope something changes with these private student loans.