If I co-sign for someone and they are not paying the bill, and has admitted that it is their debt, am I still legally responsible?

Question

They agreed to pay the bill and I do not want to be responsible for their debt.

Kevin Elliott Parks · Answer

Most likely, the answer is "yes" that is what co-signing is all about, i.e. signing off on your personal liability for the debts, obligations, or other liabilities of another, and in that way it secures the rights of the creditor against multiple debtors. You might well have a claim against the other individual debtor as well, but that doesn't necessarily mean that the creditor doesn't have claims available against you. Thus, some words of caution: one should not freely execute an agreement as a co-signor absent circumstances in which one can be assured that repayment will be made.

Leonard Schwartz · Answer

Yes. You are still legally responsible for the payment of the bill. A co-signer is really no different legally than the person incurring the debt.

Shilo Naomi Borja · Answer

The short answer is yes, you are liable for the debt as a co-signor.

Austin Hirschhorn · Answer

As a cosigner on an obligation you are as responsible for the debt as the borrower.  Even if the borrower admits responsibility for the debt that does  not relieve you from the obligation to pay.  The creditor can pick and choose who it wants to collect from and if you are the easier target they may  select you as the collection target.  This would leave you in the position of having to go back to the borrower for reimbursement.

Benjamin Gordon · Answer

If you co-sign, you are liable for the debt. To co-sign is to promise the creditor that you will repay the debt if the main debtor fails to do so.

Jeffrey Dworin · Answer

Co-signing refers to either signing a guarantee, or agreeing to be a co-debtor.  Either way, you are fully responsible.  You knew it was the other party's debt when you agreed to pay it.  The only way out is bankruptcy.  You may also ask the creditor if you can re-instate the lone - i.e. make past due payments - which will be better if your friend will start paying again.

Dennis P. Mikko · Answer

When you co-signed for the debt you agreed to be equally liable for it.  If the primary debtor does not pay, the lender can look to you to satisfy the debt.  This is a good lesson in life, don't co-sign unless you are willing to pay the debt.

Edward Olson · Answer

Yes.  If you co-signed... you are fully and equally liable for the debt.

Roberta Ohlinger-Johnson · Answer

Unfortunately, you co-signed.  A co-signor guarantees repayment if the primary obligor defaults.  In English, that means you've agreed to repay if they don't.  It's a binding, legal agreement.

Gary Russell · Answer

If you co-signed the loan then you agreed to be just as liable for the debt. If the lender comes after you, your only recourse is to sue the other person.

John Brennan · Answer

If you co-signed you are liable. That is why the lender wanted a co-signer.

Marc Stern · Answer

Co-signing means that you are responsible for the debt.  The creditor will look to you.

Matthew Frisby · Answer

Short answer to your question is Yes, you will likely be responsible for the debt if the borrower defaults. However, you should have a qualified attorney review the contract or the loan agreement. Most loans will have a notice that says something to this effect: "You are being asked to guarantee this debt. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The creditor can collect this debt from you without first trying to collect from the borrower.* The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record. This notice is not the contract that makes you liable for the debt." An attorney will review the loan documents and give you an opinion on your liability.

Cary Smalley · Answer

Yes, if you co-signed you are liable for the debt.

James Weiner · Answer

If you co-signed you are legally bound to pay the bill.. that is what co-signing does.. it puts you on the hook.

David Blain · Answer

Yes, that's why the creditor had you co-sign. It doesn't matter that you don't want to be responsible for the other persons debt or that the other person has acknowledged it is their sole debt. You signed the contract to be legally responsible for the debt. Whenever someone asks you to co-sign, assume they will default on the debt and that the creditor will come after you. If you are ok with this happening, then go ahead and co-sign.

James Dunn · Answer

YES! That is why the creditor asked you to co-sign, so they would have another person to chase for the debt.

Gregory Neuhaus · Answer

If one does not want to be responsible for another's debt, that person should not co-sign.  Of course you are going to be liable.  That is what a co-signer is for.

Diane Drain · Answer

Normally, if you guaranteed the debt you are responsible.  A co-signed loan is normally a guaranty.

Stuart Nachbar · Answer

Yes, you are legally responsible, untill the debt is paid off, discharged or   your are personally discharged in a bankruptcy.

Find a Lawyer

Ask a Lawyer

Read Legal Articles

Ask a Lawyer

Read Legal Articles

If I co-sign for someone and they are not paying the bill, and has admitted that it is their debt, am I still legally responsible?

20 ANSWERS

Find Local Bankruptcy Lawyers

Helpful Resources

Ask a Lawyer