QUESTION
Can I sue the primary borrower of a loan if I'm stuck paying off the loan I co-signed for?
Asked on Sep 11th, 2012 on Bankruptcy - Michigan
More details to this question:
I co-signed on a student loan (Sallie Mae) back in 2005 for my then mother-in-law. I was out of the Country and we had a mutual agreement over the phone on her monthly payments. The amount of the loan was $15,000 and she was to start making payments of $350 a month until it was paid off. Here we are 7 years later and I have now recently been stuck making the payments. She would make the minimum $125 payment every now and again and would even go 3 to 4 months without making a payment. This has affected my credit in the past, so I've decided to take over the loan and plan to have it paid off within the next 3 years. After it's all said and done, can I sue her for all the money I paid into this thing. I understand that I'm a co-signer and accepted the responsibility and take full responsibility for that. However, I don't think it's right that it all falls onto me just because she wants to back out of her responsibilities.
5 ANSWERS
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Yes.
Answered on May 22nd, 2013 at 3:45 AM
Dennis P. Mikko
Yes, you could file suit against the principle maker of the note. However, as a practical matter, if the maker cannot make the monthly payments on the note, how will they make payments to you? However, a judgment is good for 10 years and during that period of time you could take collection action.
Answered on Sep 17th, 2012 at 11:24 PM
Family Attorney serving Henderson, NV
at
Harris, Yug & Ohlinger
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Very simple: yes you can. From: Question From LawQA [mailto:questions@lawqa.com] Sent: Tuesday, September 11, 2012 8:43 PM To: ohlinger@hyandoattorneys.com Subject: Question From LawQA ID:80536 ANSWER A QUESTION THAT WILL BE DISPLAYED ON NEVADA DEBT RESOLUTION WEBSITES ON THE LAWQA NETWORK. LAW AREA: DEBT RESOLUTION STATE: NEVADA ID:80536 Question: Can I sue the primary borrower of a loan if I'm stuck paying off the loan I co-signed for? Question Detail: I co-signed on a student loan (Sallie Mae) back in 2005 for my then mother-in-law. I was out of the Country and we had a mutual agreement over the phone on her monthly payments. The amount of the loan was $15,000 and she was to start making payments of $350 a month until it was paid off. Here we are 7 years later and I have now recently been stuck making the payments. She would make the minimum $125 payment every now and again and would even go 3 to 4 months without making a payment. This has affected my credit in the past, so I've decided to take over the loan and plan to have it paid off within the next 3 years. After it's all said and done, can I sue her for all the money I paid into this thing. I understand that I'm a co-signer and accepted the responsibility and take full responsibility for that. However, I don't think it's right that it all falls onto me just because she wants to back out of her responsibilities.
Answered on Sep 16th, 2012 at 12:39 PM
Yes. Your co-signature on the loan is like an insurance policy for the lender. By paying the loan you "step into the shoes" of the lender. That gives you the right to sue the primary borrower on the loan.
Answered on Sep 14th, 2012 at 6:46 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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Sue her now, before you run into statute of limitations issues.
Answered on Sep 14th, 2012 at 6:19 PM