Hi everyone!! New to this forum, been a long time reader.

My situation is that I'm considering filing for bankruptcy (70K in cc debt in which i haven't made a payment in 2 years) and I am currently a student (2 more years to go and 90K more to borrow). I need to continue taking out more loans using Sallie mae signature loans in which i need to use a co-signer. The signature loans are unsecured loans (i think) and the cosigner is a family member. I don't know if these loans are dischargebale in a bk, and if they are i would like to reaffirm them if that is possible. Would this situation put the co-signer in a repayment schedule although i'm still in school? Do you guys think that i would still be able to continue taking out these loans? Should i even considered bk or debt negotiation?

Any help would be appreciated, thanks!! [/FONT]

SL are not dischargeable in BK, except under extreme circumstances. no need to reaffirm either, they will stay indeferment as long as you ar ein school

If these are truly Sallie Mae SIGNATURE LOANS, they are dischargeable in bankruptcy, because they are not backed by the governemnt.

However, if you file BK, you will not be able to quilify for more Signature Loans from Sallie Mae. You will, however, still qualify for Federally guaranteed student loans from Sallie Mae.

If you include them in your BK, and you don't reaffirm them, your co-signer will be responsible for them.

If Sallie Mae signature loans are backed by a "non profit" division of Sallie Mae, they are NOT dischargable in BK as are all other private loans steming from a non profit organization. TERI is also non profit. There are several others as well. You may need to do some research to check out SM status on signature loans.

This is absolutely incorrect.

Sorry.

Nope....you better do your homework...

Wrong. You better do your homework then.

Section 523(a)(8) of the US Bankruptcy Code, at 11 U.S.C., excepts from discharge debts "for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents".

Also from the DOE site...

<<If the loan program is truly private, with no involvement of government or nonprofit organizations, the loan would not come under the non-discharge provision for student loans under the Bankruptcy Code. However, the debtor's petition would still be reviewed and could be denied on various other grounds, such as abuse of the bankruptcy laws. Interestingly enough, most private student loan programs seem to have some sort of nonprofit involvement. >>