My question involves collection proceedings in the State of: Ohio
My mother cosigned on 3 of my student loans for me. Well she filed for bankruptcy recently and neglected to tell me beforehand. I found out a few days ago when I logged onto AES to make a payment and discovered my loan was listed as defaulted, and showed the balance was zero. Pretty surprising to me as I've never missed a payment and the loan was current. I called them and they told me my cosigner declared bankruptcy, and per their standard procedure the loan immediately defaulted and was sent to NCO. I called NCO and they don't even have the loan in their system yet (have to call back Monday). The nice woman informed me however that while I could continue to pay the loan (of my own will, they can't ask me to pay), as soon as my mother leaves bankruptcy the loan will be discharged to "collections." My mother made a huge mistake filing for bankruptcy (she was trying to force her credit card debtors to work with her on lowering payments) and she is actually backing out of bankruptcy as early as this coming week. She didn't even meet the means test, which her lawyer had told her she would (a whole different story).
Anyways, what can I do here? What should I expect? I'm wondering if NCO is going to try to attach any collections/handling/late fees or anything to my loan? If they do how do I fight that, since it's utterly outrageous that I should receive any fees for a loan that was in PERFECT standing. I'm also worried whatever collections group they send it too is going to just be a nightmare to deal with. I am waiting to see them attach their own fees and then tell me the entire amount is due immediately and pressuring me to pay on it right away.
What do I do here? What are my options? I'm exploring a consolidation loan from a local credit union, with the goal of buying out the loan from NCO and just dealing with the CU... but ironically enough it looks like I won't be able to without a cosigner (thats what got me into this problem in the first place!!!!).
Advice and suggestions?