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  1. #1

    Default Cosigned For Private Student Loan, and Borrower Is Threatening Default

    About 4 years ago I was engaged and cosigned on a couple private student loans which total around $20k. These are not federal guarenteed loans. They were taken out through Bank One, which is now Chase Bank. The loans have since been taken over by some other bank.

    About a year after getting the loans, the fiance left me. Now, almost 4 years later, she contacts me saying that because I cosigned for the loans that WE took out (we used some of the money for living expenses) she wants me to make 50% of the payment every month.

    I refused, and told her I would give her $5,000 in cash to refinance with a different cosigner. She didnt like the offer.

    A little more on the background, we had to both file bankruptcy. Hers was a chapter 7 and mine was a 13. I called my bankruptcy attorney and he said the bank will most likely go after the money if we filed it... which would cost more in the long run.

    She is now threatening me that if I dont pay half, she will not pay anything and let the loans go into default. Not sure if she is serious or just trying to scare me. My bankruptcy attorney thought $5,000 was more than enough of a fair offer to her, and said to just wait it out.

    What our your thoughts? If she doesnt pay, and I dont pay, will they go after her and her wages first? She is now a Nurse, making more than me, and is more than able to pay the entire thing. My bankruptcy attorney also said that if they went after my wages, I can turn around and sue her for the amount because she is the one who got the education out of it.

    Any ideas, thoughts, tips, or suggestions?

    Thanks

    Oh, in case you need to know, we both live in Indiana

  2. #2
    Join Date
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    Default Re: Cosigned For Private Student Loan, and Borrower Is Threatening Default

    The creditor can be expected to pursue the money they are owed, wherever they can find it. Creditors aren't known for trying to be fair - they are known for looking for amounts that can be garnished (particularly wages and bank accounts) and grabbing the money. It seems like your attorney is giving you sound advice.

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