Author Topic: Private Student Loan Companies - Discover and Citibank  (Read 648 times)

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Black Pony

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Private Student Loan Companies - Discover and Citibank
« on: March 28, 2014 05:01:37 PM »
I posted this on another board and they suggested I come post it here because it *might* be something that could have been discharged?

My original post was:

Does anyone have any experience dealing with Discover and Citibank Student Loans?  I co-signed loans for my then husband.  We have been divorced for several years.  They did not let me know he stopped paying until it was over 60 days behind.  At that point I was dealing with my own issues.... then I went through a Chapter 7 and they weren't allowed to contact me.

At this point they have charged off the loan and sent it to a CA.  I am drafting a verification letter to send to them now.  Will they settle that kind of debt?  I know private loans have to file suit before they can garnish or place liens but I really don't want it to go to that point.  I have a divorce decree that says the ex should pay but not sure if it's worth going after him for breach of contract since he lives out of state?  Even if I win against him... if he refuses to pay what can I do?

Any guidance is greatly appreciated.

<end original post>

My attorney said they couldn't be included in the bankruptcy?  These were loans used to go to Park University in Parkville.

Could the have been included?  Should I see about reopening it to have them added?

Bruno the JDB Killer

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Re: Private Student Loan Companies - Discover and Citibank
« Reply #1 on: March 28, 2014 05:36:11 PM »
They can be discharged, but it is difficult. If they sue you, implead the ex as a third party defendant. Divorce decrees are between you and him, the lender is not a party to the decree and could care less about it.

If he can pay but just refuses, he could be in contempt of court. How much is the debt? Date of last payment? State you live in? Is it two different lenders?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

CleaningUp

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Re: Private Student Loan Companies - Discover and Citibank
« Reply #2 on: March 28, 2014 11:25:54 PM »

They can be discharged, but it is difficult. If they sue you, implead the ex as a third party defendant. Divorce decrees are between you and him, the lender is not a party to the decree and could care less about it.


Correct. Creditors don't care what your divorce decrees say.  You co-signed, you are on the hook.  Full stop.  End of discussion.



If he can pay but just refuses, he could be in contempt of court.



And so will the co-signer.  A contract is a contract, and a co-signer is a willing party to the contract. 

The courts will not look beyond the the four corners of the the original contract regarding the payment of the original bill.

The court may require the ex to repay the co-signer, but the only way that the co-signer is going to keep this from ruining their credit report is to pay the bill if the ex doesn't pay.

The OP may have to go to court to get a court order to get the ex to repay this based on the divorce decree, but that divorce decree is not a get-out-of-jail free card with the original creditor.


 

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