What will happen to the cosigner of my student loan if I declare bankruptcy?

If you declare bankruptcy and cannot repay your debts, the cosigner on your student loan may be required to repay the debt on your behalf. A cosigner is essentially insurance on the loan; the individual is agreeing to take over for you if you cannot repay the debt. The lender will not simply allow your loan to go unpaid if you declare bankruptcy. You can attempt to establish a repayment plan, particularly if you are entering a Chapter 13 situation. If you cannot repay the debt through some type of loan workout, your cosigner may have to take over the loan or be sued for the balance.

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