Co-signing parents filed for Chapter 13 Bankruptcy.

Asked almost 2 years ago - Bellevue, WA

My parents co-signed on two of my student loans. I have been making payments on-time and in full on these two loans since repayment began. Well, my parents filed a Chapter 13 bankruptcy and my creditors are telling me the accounts will be listed as a "charge-off" on my credit report even though I am current on all payments. They will not bring the account back into current status. What are my options? My credit is decent and I am worried it will be ruined by this.

Additional information

I should add that since they filed for bankruptcy, I have been sending in payments through the mail so the accounts remain current.

Attorney answers (5)

  1. Jacob D DeGraaff

    Pro

    Contributor Level 11

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    Lawyers agree

    Answered . Chapter 13 has protections for co-debtors such as yourself. Your lender may be liable for violating the bankruptcy stay in your parents' case, depending on how their plan is structured. Are they still accepting your payments? You should meet with an attorney who handles both Fair Credit Reporting Act (FCRA) and bankruptcy matters. You may be entitled to compensation for the damages to your credit.

    This answer is in the nature of a general legal analysis and is not taylored to the facts of your specific... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

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    Lawyers agree

    Answered . Is is okay to dispute this information on your credit report. The phrase "charge off" means that the account is more than 180 days late & this is incorrect. Hope this perspective helps!

  3. Todd Michael Boudreaux

    Pro

    Contributor Level 11

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    Lawyers agree

    Answered . I agree that you can dispute the negative credit information directly with the three credit bureaus.

  4. Matthew Erik Johnson

    Contributor Level 17

    2

    Lawyers agree

    Answered . A charge-off would be innacurrate if it were on your report and you are up to date on payments. You should obtain the advice of a "credit cleaner" who can clean this up for you.

    Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale... more
  5. Robert Charles Russell

    Pro

    Contributor Level 13

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    Lawyers agree

    Answered . Your personal credit report is personal to you. Yo did not file bankruptcy. Having said that, I don't understand the "charge off" entry on any level. Student loans are, basically, nondischargeable. I'd suggest you keep making the payments, on time, and do it is such a way you can prove it, if at all possible. Also, challenge your credit report. I really doubt they charged off your student loan. Why would they? Further, the fact that the Chapter 13 provides you with a codebtor stay (until relief is obtained) means they cannot take any collection action against you - and that generally includes negative credit report entries. Si, I'd make the payments and challenge the report and see if they get it right. If not, I'd contact a qualified attorney to take a look. We'd be willing to help.

Related Topics

Bankruptcy

Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.

Chapter 13 bankruptcy

Chapter 13 bankruptcy is called a wage earner's plan because it lets people who earn an income repay their debt (all or some) over time and keep their property.

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