Legal Question in Bankruptcy in New Jersey

If a student files chapter 11 and has student loans can the lender look to the gaurantors of the loan for payment of the loans?

Asked on 8/17/12, 7:32 am

1 Answer from Attorneys

Paul Riviere Riviere Cresci & Singer LLC

Chapter 13 extends that stay to any cosigners, at least for "consumer" loans (personal, family, or household debt; not business loans). During the duration of the temporary stay, creditors cannot go after the cosigner. Also, whatever payments will be made under the plan will be credited against the cosigner’s obligation, reducing what he or she might have to pay. If you have any question feel free to call us or visit our website: or (732) 64-NJLAW

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Answered on 8/17/12, 7:43 am

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