If I co-signed on a student loan with my ex who has since filed for bankruptcy, did my credit union have the right to preemptively take money from my account without warning?

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If I co-signed on a student loan with my ex who has since filed for bankruptcy, did my credit union have the right to preemptively take money from my account without warning?

The remainder of the loan was taken from my bank account. It is my understanding that a student loan can’t be forgiven in bankruptcy, so did the credit union have the right to take the funds?

Asked on November 27, 2014 under Bankruptcy Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If the loan agreement or other agreement you have with the credit union gives them the right to take money directly out of your account if you owe it, then yes, they could do this. When you co-sign a loan, the lender is entitled to go after you for the money either in addition to or instead of the other signers; they don't have to wait to see if they can collect from the other people first before seeking it from you.


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