What will happen of my late father was the co-signer of my student loan and I can’t afford to pay the loan?
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What will happen of my late father was the co-signer of my student loan and I can’t afford to pay the loan?
I have used all extensions up.
Asked on February 6, 2012 under Bankruptcy Law, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you father has passed away, then if his estate has not yet been fully settled, it could theoretically be sued for the money if you default on the loan. However, it his estate has already gone through probate, then the heirs and beneficiaries who inherited from it (if any) should not have anything to fear, and only you, as the signer, has something at stake.
As for you: expect that if you default, you will be sued for the money. Student loans are essentially impossible to discharge in bankruptcy (less than 1% of people who file for bankruptcy and who have student loans end up discharging them), so the lender will get a judgement against you. That judgment, which the lender can try to enforce for years (typically 10 - 20 years) to come will potentially let the lender garnish your wages. levy from your bank account, put a lien on real property, and/or force the sale ("execution") of personal property, like vehicles. If at all possible, try to work out with the lender a payment plan which you can meet.
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