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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12925
Experience:  B.A.; M.B.A.; J.D.
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Co signed loan now filing chapter 11 how does this effect us

Customer Question

We co signed for my son Fanny May student loan and now he is filing chapter 11. How is this going to effect our credit or will Fanny May come after us for the money, if so what can us do to avoid getting involved
Need help!! My wife and I are on S.S.D and live on a struck budget
Please give us information to help
Thank you,
Steve Klein
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 5 years ago.
Your son filed Chapter 11? or is it Chapter 13 or 7?
Customer: replied 5 years ago.
Sorry it took so long to get back with you. He told me that is a Sallie Mae loan, is there a difference between the too. It’s a Chapter 13
Thank you
Expert:  Phillips Esq. replied 5 years ago.

It does not make that much of a difference which chapter since this is a Sallie Mae loan.


Sallie Mae will not come after you because your son is still responsible for the loan. Student loans are generally not dischargeable in a bankruptcy case. In addition, Chapter 13 offers protection for co-debtors who are not filing for bankruptcy. This means that Sallie Mae will not contact you for payment while the Chapter 13 case is pending.


Depending on his Chapter 13 plan, your son will either be making payment to Chapter 13 Trustee for the student loan or making payments directly to Sallie Mae. This assumes that his loan is in repayment. If his loan is not in repayment and is either in forbearance or deferment, then no payment will be made during the Chapter 13 case.

Your credit may be affected because this information will be reported on your son's credit file and since this a joint account basically, the same information might show on your credit file. Apart from that, you will not be affected in any other way, and because generally student loans are not dischargeable in bankruptcy, your son will still be the primary borrower on the loan and still be liable for the loan.

Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12925
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
Thank you for the information
Sreve Klein
Expert:  Phillips Esq. replied 5 years ago.
You quite welcome

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