Chapter 13 being filed by a co-signer!
I have loans from Sallie Mae in a large amount, both federal and private. My parents co-signed these loans and, due to unrelated issues, my parents recently filed for a Chapter 13. I knew about this, but the fact that they co-signed for my loans escaped our minds.
Now, Sallie Mae is aware of this and has put a hold (i.e. they won't accept payments) on loans which were co-signed by someone who is now in bankruptcy status. Before, this I was paying my federal loans via income based repayment and my private loans were in internship/residency deferment.
Since I am the primary account holder with Sallie Mae and since I am NOT filing for bankruptcy, anyone have a clue of how does this affect my credit rating and/or how does this have a detrimental effect on me? Am I in trouble as far my credit or my future goes? Or will I be okay since I am not the one filing?
If anyone knows anything about this, please do tell.