My question involves collection proceedings in the State of: MA.
Hello,
I was hoping to get a bit of legal advice on the following:
In 2008, my Fiances co-signer, on a private student loan, filed for bankruptcy. The lendor almost immediatly placed the loan into "CLAIM PAID", the balance listed as $0, and the loan was then placed into the hands of a debt collector. In the promissory note, it states that this can happen if either the debtor or co-signer files for bankruptcy.
Since this happened, the debt collectors have been calling both the debtor and co-signer requesting payment on the loan. This makes sense as both parties are equally responsible for the loan. However, as of recently the co-singer has been calling my Fiance, the debtor, asking for updates and at times threathing to sue if the debtor does not handle the full amount of the debt to be paid off.
This is the ONLY loan the debtor has in a state of this type. It is in this state because the co-signer filed for bankruptcy. All of the other loans are being paid off as a loan should through the original lendor. Payments are, and have been, made to the debt collector on a schedule. The debtor is also working to resolve this issue but the progress has been slow as it is not easy to aquire an additional loan, or forms of money, to cover this one.
Does the co-signer have grounds for suing the debtor?
Can the co-signer pursue the debtor to resolve the issue as soon as possible?
I have also heard that if a loan is defaulted on, a certain number of payments agreed upon by the lendor and debtor can take it out of a default status and return it to normal, is this true?
Any information would be greatly appreciated.
If needed, I can provide some additional details. I will say that at this point in time, I do not know what type of bankruptcy the co-singer filed for, whether or not that matters at this point, and if the loan was covered in that same bankruptcy. Given that student loans are non dischargeable, I will assume it was not.

