If I filed Chapter 13 and forgot that I co-signed my daughter’s student loans, what happens if the lender has told her she has defaulted despite her timely payments?

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If I filed Chapter 13 and forgot that I co-signed my daughter’s student loans, what happens if the lender has told her she has defaulted despite her timely payments?

This lender’s loan was not turned into lawyer when I filed 5 months ago as I had forgotten about it. She has always made timely payments and I did not tell her I was filing bankruptcy. She called her lender today to find total owed for home loan refinancing application. The lender told her she was in default despite timely payments. They also said they had reported it to the credit bureau. The loan amount is $4700and can be paid off immediately. How is this going to affect her credit? What can be done to protect her credit rating?

Asked on August 15, 2011 Illinois

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

If she is current with the payments, and you are merely a co-signer on the loans, I can't see any reason why they would list the loan as being in default.  You (or rather, she) should consult with an attorney who deals with Fair Credit Reporting Act claims.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

If she is current with the payments, and you are merely a co-signer on the loans, I can't see any reason why they would list the loan as being in default.  You (or rather, she) should consult with an attorney who deals with Fair Credit Reporting Act claims.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr


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