Cosigner and Student Loans

[racingzero]

My question involves bankruptcy in the state of: IL
Chapter 7

Hi,

I will be filing for bankruptcy soon, mainly to get rid of credit card debt. I currently have several government and private student loans in deferment. Two of the private loans have a cosigner. I know that the student loans will not be discharged, nor do I want them to be discharged. If all my debt is discharged in bankruptcy, minus the student loans, with the private banks go after the cosigners? What will happen to the student loan cosigners, if anything? The student loans are currently classified as "in-school deferred" until January 2014. They are not delinquent and no payments are due/late.


Thanks

[Drazil65]

Hi, My spouse filed in December 2011 and was discharged March 2012. He has 2 private student loans and I cosigned for them (he was full time student with no income at the time). Once he filed Sallie Mae sent me a letter and made me the primary borrower for the duration of the chapter 7 filing. Once the discharge came through I had to contact them and fax over a copy of the discharge. Once they rec'd the discharge they then put his name back as primary borrower.

[Drazil65]

Sorry, I forgot to add that the student loans are and always have been current so that did not play into it.

[HHM]

Most likely yes, ans Drazil points out, as soon as you file BK, it is HIGHLY likely the student loan servicer will contact the cosigner. But, as long as they are not in a default or delinquent status, nothing adverse should happen.