Expert: Michael T. Hertz - 1/11/2012

Question
With regards to my Chapter 7 discharge question already asked in that more than likely the student loan was not discharged; how can I actually find out if it was discharged?  Would there have been some additional extensive paperwork on this?

Secondly, if it is correct that I am still responsible as a co-signer; is it possible for my wages to be garnished and any legal action to be taken against me first, before any action could be taken on the primary borrower (my ex-spouse) on the loan?  

I have in the past helped my ex-spouse receive forebearances on the loan, as well as helped to get payments down really low. But each time, after about 3 months of on-time payments, my ex-spouse becomes late, and then stops paying it, and does not make the loan  a primary concern. It's over 260 days past due.

Would my ex-spouse have their wages garnished first, before they would even come after me? Or is there no protocol on who Sallie Mae would go after first?  I did make Sallie Mae aware that I was awarded Ch. 7. And I've always worked with them to give my ex-spouse's information to them, as they seem to never make contact with my ex-spouse.  I am the one always receiving the letters and notices, as so I am being told by my ex-spouse. The latest letter was asking for a settlement on the loan.

I'm just very concerned as I am trying to support my child (as my ex-spouse is too; 50/50 custody with neither receiving child support), I pay 60%+ of the child care costs, and keep a roof over my head and I make LESS in salary than my ex-spouse. My ex-spouse seems to make other things a priority over the Sallie Mae loan.

Please advise me as to the legal ramifications that could occur.

Answer
There really is no further paperwork.  The discharge you get or got in the Chapter 7 is no defense against an action to collect.  Your only option would be to commence an action in the bankruptcy for a determination that it would be a real hardship on you to pay.  This is a very tough case to win and you would have to ask your attorney if you had any chance of winning.

So far as I am aware, the lender can proceed against either or both you and your ex on the loan.  It's up to them.  You should follow up and see if the lender will actually settle for a reasonable sum, given your circumstances.