Expert: Terry Leeders - 7/25/2009

Question
I'm in the state of Indiana. My sister cosigned on a loan for me with SallieMae about 2 years ago. I just found out by SallieMae that my sister is in the process of filing bankruptcy. She never told me she was filing bankruptcy and I'm wondering how will this effect me and my credit? Is there anything I can do?

Answer
Cosigners are not affected by bankruptcy.  You are also responsible for the debt payment, so your credit will be affected based on the payments made.   Also, student loans are not dischargeable in the bankruptcy case as well.  If she keeps making the payments on time, then there will be no issues.