My question involves collection proceedings in the State of: Missouri
I will likely be filing for bankruptcy in the coming days and while I was adding creditors to my Schedule F, I was reminded that two of my private student loans with SallieMae were co-signed by my mom. Both loans are in repayment and they are both current.
Now, I understand fully that all student loans, public and private, are not dischargable in bankruptcy without a showing of "undue hardship." However, what will happen, administratively speaking, with these two loans when I file?
I've read conflicting things -- some say that SallieMae will temporarily transfer the account out of the Debtor's name and into the co-signor's name, until the Debtor is discharged, at which time the loan will be transferred back into the Debtor's name. Some say that SallieMae demands full payment from the co-signor. Some say nothing happens as long as you're current.
Which is it? Anybody had experience with this?
I'd call their call center and find out, but the folks in Karachi aren't usually very helpful and usually give blatantly false information.