Legal Question in Credit and Debt Law in Pennsylvania
Private Student Loan
Co-signed for Son's 6 different sudent loans from Citibank. A total of $31,000 has increased now to $50,000. He has used all his deferment time and I cannot remove my name as co-signer because of late payments. Found out that he was just paying the min amount and nothing towards the priciple. I became ill with MS and can't work anymore. Fixed income with Social Security. Cannot afford to pay off his loan. The loan went into default by a collection agency.He has'nt payed anything in 2 years. He has no credit and has trashed mine after me having a perfect credit history all my life. He has no assets and the only thing in my name only is a 12 yr old jeep. PA Stat of Limit 4 yrs? Credit history cleared in 7 yrs? Will my credit be as it was? If I should die after the Stat of Limit, will the loan still be paid out of my estate? Except for the jeep, everything else is jointly owned by my husband and I. Can they go after jointly owned property? Citibank was very aggressive and the collection agency was too, but then all the calls suddenly stopped. I have no choice. I would have to stop my meds to pay on just some of loan but the disease would progress, might end up in a wheelchair.Left with no choice even as cosigner responsible.
1 Answer from Attorneys
Re: Private Student Loan
You asked about a private student loan.
Educational lenders are generally very aggressive and intolerant. The status of private educational debts is up in the air due to the changes in the law after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
BAPCPA changed the law and provided that such private debts were non-dischargeable to the same extent that only government guaranteed debts were previously. It has yet to be determined whether that law changed any other terms of the loans, such as statutory period, or whether that just makes them non-dischargeable until the limitation period runs. Private lenders can always reduce a loan to a judgment and that revives the debt as a judgment debt for 20 years.
I can't give you actual advice because there is no hard and fast answer yet.
If the collections efforts resume then it would be appropriate to get aggressive and defend this matter.
As to your credit rating, they are very over rated. A person's need for a credit rating is tied only to their need to acquire stuff. One bad line on a credit report generally will not have an overall negative effect on credit in normal times (but these aren''t normal times). More likely, your illness would have have a much greater affect on your ability to borrow.
The loan may be uncollectable after four and one half years from the last payment, or time when a payment was due. It may stay on a credit report for seven years from that same date.
Regards,
Roger
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
