I co-signed for my friend's student loan which was 40 thousand dollars, and now with interest and everything it became 60 thousand dollars.
and she won't pay for the loan so i keep getting letters from loan company asking me to pay for it, and if i dont pay by end of this month they will report it on my credit.
should i file bankruptcy now?... if i file bankruptcy will i be still liable for the loan?
there's no way i can pay 60 thousand dollars... what should i do?
2007-02-18 17:22:35 · 5 answers · asked by Popper 3 in Business & Finance ➔ Credit
she used the loan company name 'salliemae'... i'm not sure if it's bank or federal...
2007-02-18 18:42:45 · update #1
You can't file bankrupcy on student loans.
2007-02-18 17:26:00 · answer #1 · answered by Anonymous · 2⤊ 0⤋
First of all, never cosign anything for anyone. They always end up burning you. Secondly, there has to be a minimum payment that you could continue to pay until you get some legal advice. I am pretty sure that you are screwed. If the payment is too high, talk to a debt consolidation firm. Watch out though, some of them are fraudulent. I would consider talking to the parents of the person who you co-signed with, if they are still alive. Perhaps they could force a guilt trip upon the A#$ that did this to you. Sorry.
2007-02-18 17:51:59 · answer #2 · answered by lonmoe23 2 · 0⤊ 0⤋
As JD said Student loan debts are non-dischargable that is, if you declare bankruptcy you will still owe on them. However, I think that may be for Goverment Guaranteed Student loans only. I have not heard of a Goverment Student loan needing a co-signer.
Now if it was a regular bank loan that she used for school it may be dischargeable in a bankruptcy. I would get the paperwork you signed for the loan and at least try to get a consultation with a bankruptcy attorney.
Even though your friend was the one who went to school, you were probably the one who learned the hard lesson to not co-sign for anyone.
2007-02-18 18:28:02 · answer #3 · answered by OC1999 7 · 0⤊ 0⤋
Student loans are not erased under bankruptcy. You should threaten to take your friend to court. They aren't much of a friend anyway if they dump this on you. You should also contact a lawyer for advice. You may qualify for legal aid if you have a low income and many lawyers offer free initial consultations.
2007-02-18 18:47:58 · answer #4 · answered by kwilfort 7 · 1⤊ 0⤋
I also believe that as long as you are at least paying like 10.00 a month they will not do anything to you. But I would check with an attorney.
2007-02-18 17:33:20 · answer #5 · answered by DragonGirl87 2 · 0⤊ 0⤋
Get the advice of an attorney.
2007-02-18 17:31:04 · answer #6 · answered by notaxpert 6 · 0⤊ 0⤋