Mother in Law on the hook
Date: Tue, 12/29/2009 - 09:03
Mother in Law on the hook
My mother in law in the state of NY co-signed my brother in law's private student loans with Minnesota banks totaling ~40K over a span of several years. He has additional loans amounting to another ~60K for which she did not co-sign. He cannot pay, nor does he have prospects of being able to pay within the next decade, if ever. Naturally, the banks have come calling on my MIL. Several requests for forbearance have resulted in a temporary arrangement whereby she pays interest only to two of three lenders while making full payments to the third. She lives on social security and a small distribution from an annuity-- in all about 14K/year. She lives in a partially subsidized retiree home in western ny.
Several months ago she began working with a free legal service and has provided all the relevant documentation for their review. So far as I can tell the lawyer she's been working with is quite competent and diligent.
The BIL has gone under the radar and no longer engages her or anyone else in the family. So rather than working through this collaboratively my MIL is on her own.
More on her finances: SS yearly payment before deduction for Medicare = ~ 10,400. Annuity distribution = 4K/year. Additional assets: investment account valued at ~35K. Bank deposits = ~ 5K.
She is 75 years old and not able to work but never determined to be disabled. The good and bad news is she has longevity in her genes.
Questions:
Based on her income and meager assets, what is the likelihood that she can obtain full release from these loans?
What compromise outcomes are possible?
Thanks for any insight.
Several months ago she began working with a free legal service and has provided all the relevant documentation for their review. So far as I can tell the lawyer she's been working with is quite competent and diligent.
The BIL has gone under the radar and no longer engages her or anyone else in the family. So rather than working through this collaboratively my MIL is on her own.
More on her finances: SS yearly payment before deduction for Medicare = ~ 10,400. Annuity distribution = 4K/year. Additional assets: investment account valued at ~35K. Bank deposits = ~ 5K.
She is 75 years old and not able to work but never determined to be disabled. The good and bad news is she has longevity in her genes.
Questions:
Based on her income and meager assets, what is the likelihood that she can obtain full release from these loans?
What compromise outcomes are possible?
Thanks for any insight.
Not likely at all. Even bankruptcy would probably not relieve h
Not likely at all. Even bankruptcy would probably not relieve her of any obligation.
