What are a co-signer’s rights in the event of a default?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are a co-signer’s rights in the event of a default?
My fiancée’s father recently called saying that collectors were calling for his ex-wife. Apparently his father had co-signed for a student loan for her many years ago and now she has defaulted on it. When asked about it, she stated that she was filing for bankrupcy and that she wasn’t going to pay for it. This is goig to affect his credit. Is there anyway that he can sue her for the cost of the loan or will it be thrown out since she is filing bankruptcy?
Asked on October 15, 2013 under Bankruptcy Law, North Carolina
Answers:
Terence Fenelon / Law Offices of Terence Fenelon
Answered 11 years ago | Contributor
first of all, student loans are non-dischargeabale in bankruptcy so the person who is attempting to avoid loability will not obtain relief. Secondly, as a co-signer, an individual is liable for the debt. Is there a divorce decree in effect which contains an indemnification clause? If so, he may be able to get relief from the divorce court.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.