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  1. #1
    Join Date
    Aug 2011
    Location
    Illinois
    Posts
    1

    Default Marital Debt vs Bankruptcy

    My question involves divorce in the State of: Illinois

    I was unsure of exactly which forum I should post this to, so if it is in fact the wrong area, I apologize in advance...

    Part of my divorce settlement in 2010 included me paying a $20,000 student loan that I co-signed for my ex-wife in 2005. After the divorce was finalized, I began paying the monthly charge through an automatic debit system that Sallie Mae offered. During this time, I had also filed a chapter 7 bankruptcy. After the bankruptcy was discharged, the automatic debits stopped. I contacted Sallie Mae and they would only tell me that I was no longer listed on the loan and thus, they could not divulge any further information to me. My ex-wife and I were able to enter into a conference call with a rep from Sallie Mae. With the primary borrower's presence (ex-wife), the Sallie Mae rep stated that I was no longer listed on the loan due to my bankruptcy. Baffled, I have been trying to contact my bankruptcy lawyer, but have yet to receive any reply from him.

    I'm hoping that someone here would be so kind as to try and shed some light on the following questions:

    1. I was told that student loans (except in cases of extreme hardship) could not be discharged. Armed with that information, I haven't a clue how I could no longer be liable for the student loan even as a co-signer in the eyes of Sallie Mae.

    2. Assuming for whatever reason, I am no longer liable for the student loan in the eyes of the creditor, am I still obligated to pay the loan because of the divorce decree?

    3. One of the other things mentioned by the Sallie Mae rep was that the loan had accrued $16,000 in interest and fees due to various forbearances, deferments, etc and that the total was now $36,000. According to Sallie Mae, these were almost all accrued between 2005 and 2010 (before my divorce was finalized). With this being said, if I am still "on the hook" for the loan because of the divorce decree, am I liable then for the $20,000 ($436 per month) stated on the divorce papers or the $36,000 that my ex wants?

    4. Either way, I'm not even sure how to pay...would I simply make checks out to my ex and keep track of the records until the debt is paid in full to her?


    Thanks for any help you might be able to give...

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Marital Debt vs Bankruptcy

    We know less about the loan than you do, so you should discuss the specifics with your lawyer.

    But yes, you remain bound under the divorce judgment. If you are unable to determine how much you owe your wife under the divorce judgment, discuss that with your lawyer as well.

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