Student Loan Question

[lostinnola]

I have a question in regards to private student loans. My parents took a private student loan for me. They declared chapter 7 in 2004, before the law changes. They were the primary and I was a co-signer. I now had to file in 2010. Is the private student loan going to come off the books or do I still owe it?

Thanks.

[justbroke]

Unless you specifically filed a complaint to determine dischargeability of that debt, then it is not discharged. If you are unsure, then file an adversary proceeding (AP/complaint) to determine dischargeability. This way, you'll know for sure and it will put the creditor on notice as well that their claim may be discharged.

[lostinnola]

So how do I go about doing that? Is there anyway to tell once my discharge goes through? My discharge is suppose to be this coming week.

[justbroke]

Yes, there is a way to tell. If you filed a complaint to determine dischargeability under 11 USC 523, and the Judge found in your favor, then the loan(s) is discharged. Otherwise, student loans are not discharged (period). Since it would not be discharged, you will continue to owe it and collection can continue.

[Brazzy]

Collections will typically stop during the BK proceedings. However they will start again. The funny thing is people try to sneak out on technicalities on the private student loans. Unless there has been some permanent reason that your income will never be sufficient to pay the loan. One example would be a person who went to school to be a brain surgeon and got drunk and was playing with a snow blower and lost their hands. Well obviously they will never be a brain surgeon. More and more people are trying to use the economy as an excuse but its not really working out too well for them as eventually it will rebound and ideally you will get a job.