Can Debtor’s be obligated to repay a student loan co-signer post discharge?

Yes. An Illinois Court held that a Debtor’s obligation to repay her former father-in-law who had co-signed her student loans prepetition was postpetition debt that was not discharged:

Even though the Chapter 7 debtor’s former father-in-law co-signed her student loans prepetition, the debtor’s obligation to repay her former father-in-law for his postpetition payments on the debts was a postpetition debt that was not discharged.

Based on the facts and state law, the court held that when the debtor missed a post-discharge payment on the loans, the former father-in-law’s was contacted and made a payment. At that point, the former father-in-law became entitled to repayment from the debtor.

Accordingly, the former father-in-law did not violate the discharge injunction by attempting to collect from the debtor for his postpetition payments on the loans.

In re Shuey, 582 B.R. 454 (Bankr. N.D. Ill., Jan. 3, 2018)

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