Post DC Student Loan Issue and Co-Sign

ANGEL99 · ‎03-16-2020

I was DC six weeks ago. I received a letter from Wells today that says I apparenty co-signed a student loan with my ex years ago which charged off last year. It does show on my credit as a CO up until I filed. It currently shows closed and $0 balance, expected given my filing.

I never received any letters about it until now. Ex filed a CH13 back in 2016 whch was dismissed last year failure to make payment trustee payments. The student loan amount is small so I am happy to pay it. My concern is Wells is saying the account would be updated as paid CO. The problem is I do not want a CO reporting or reaging now that I am DC which I suspect would hinder my rebuild.

Thoughts? Any other options here?

Anonymous · ‎03-16-2020

@ANGEL99 wrote:
I was DC six weeks ago. I received a letter from Wells today that says I apparenty co-signed a student loan with my ex years ago which charged off last year. It does show on my credit as a CO up until I filed. It currently shows closed and $0 balance, expected given my filing.

I never received any letters about it until now. Ex filed a CH13 back in 2016 whch was dismissed last year failure to make payment trustee payments. The student loan amount is small so I am happy to pay it. My concern is Wells is saying the account would be updated as paid CO. The problem is I do not want a CO reporting or reaging now that I am DC which I suspect would hinder my rebuild.

Thoughts? Any other options here?

I'm no expert but from what I've read, any history up to the FILING (not DC) is acceptable. Creditors can't add any history after the filing date. Zero. If your ex's CO happened before your filing, it is there. If it happened between the filing and the DC them I would fight it

also, you may try PFD if that's an option. Though BK7 is set up to erase your debts so you can start with a clean slate.

Federal student loans like child support cannot be discharged from BK7 ... but private ones? Check with your Bk attorney. Might be with your time

good luck and sorry to hear about this

ANGEL99 · ‎03-16-2020

Ok. I dug deeper and the account is not on EQ. Only EX and TU. TU actually showed the date of removal for 4/2018 which I found interesting. I disputed it as too old to report and they removed it within the hour. Score! I suspect it is a prvate as there is not common servicer and the tradeline shows as just Wells Fargo EFS.

Anything preventing Wells from re-reporting and would BK filing change that at all?

Thanks!

FireMedic1 · ‎03-16-2020

I believe since its a private co-signed loan. Your off the hook. No negative info can be placed on your reports after filing. Nada. But I'll ping @Anonymous our in house SL expert and maybe you can get a better answer than mine. Federal is a lot tougher to get out of. Good Luck!

ANGEL99 · ‎03-17-2020

Thx. I am almost certain this is private loan, but how do I know for sure? Also, if this is private and the fact Wells Fargo EFS was on my petition, which I verified, why would they even being trying to attempt to collect? This is for sure a BK violation right?

ANGEL99 · ‎04-09-2020

Hey all checking back in.. I saw today that Wells fargo is now re-reporting it as a current CO on my reports. Ugh. Doersn't seem to be impacting my score though and again it just reports to EX. I disputed it and will see what happens. Recommended next steps if that does not work?