Bankruptcy Questions

[Nolan34]

So my fiance has come to the decision to file bankruptcy. She made alot of mistakes with her credit and had some questions for me that she wanted answered.

She has several student loand to include Federal and Private. I know Federal loan aren't eligible to be discharged under BK but was curious about the private ones. She spoke with a bankruptcy lawyer and she explained everything to him. When she got the private loans, her father co-signed for them. The lawyer stated that those loans cannot be placed under BK because her father co-signed and he would also have to file bankruptcy too. He advised her to contact the collection agency that own the loans and try to setup a payment plan. Is this worth it?

Is this true? I respect the lawyer in his profession but I know there is alot of smart people on this forum that could assist us.

Also with old debt, collections, etc., what happened when she files and what should she expect.

Thank you for everyones input because this is something new for her and especially me

[Bruiser]

From what I understand, and someone please correct me if I'm wrong... All student loans cannot be discharged through bankruptcy. I'm not aware of the private loan law, but if it's still classified as a student loan, I don't think you can include it. If somehow it doesn't count as a student loan, then they would go after the co-signer for the debt owed after it was discharged through bankruptcy. Unless the co-signer also filed for BK. That is probably what he was talking about.

[Nolan34]

My fiance (and her father) both received the same letter from the collection agency. It said it would garnish her wages, etc., but would they go after her or the co-signer (or both)?

[Bruiser]

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@Nolan34 wrote:

My fiance (and her father) both received the same letter from the collection agency. It said it would garnish her wages, etc., but would they go after her or the co-signer (or both)?

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They will go after her first, then they will go after her Father. Sometimes both at the same time. They tend to try and collect from both but will go after the primary person or whoever they can collect on easier.

If she files for Bankruptcy, they will go after her Father and not her. If the debt can be discharged.

[Nolan34]

As for unsecured debt, how far back do they discharge old collections?

[Bruiser]

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@Nolan34 wrote:

As for unsecured debt, how far back do they discharge old collections?

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There's no limit on how far back they go when discharging during a bankruptcy. Any debt obtained prior to the filing date is eligible for discharge. Not counting student loans and taxes, which cannot be discharged.

[Nolan34]

My last question is, when we get married and she has the BK on her report, does this affect me in any way?

[bstone]

Her filing prior to your marriage won't directly affect you or your credit, however, it may create difficulties getting approved for joint credit down the road or higher rates. The BK remains on her credit for ten years.

While she should be able to immediately reestablish credit, it still shows up and it will still create challenges no matter how well she establishes new credit.

Hopefully your credit is stellar to offset hers if you plan on any large joint purchases in the next two to three years.

[Nolan34]

Yes, i have excellent credit so that will help us. Thanks everyone for your help