QUESTION
If someone cosigns a loan and is no longer in contact with the signor and the signor defaults what is the liability to the cosigner?
Asked on Apr 18th, 2013 on Bankruptcy - Michigan
4 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
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Whatever the contract provides. Most likely the co-signer is responsible for the debt and can be sued if the contract and law provides.
Answered on Apr 18th, 2013 at 11:33 PM
A cosigner is the person who tells the lender, in effect, if the primary person does not pay, the cosigner agrees to be on the hook to step up and pay off the full remaining balance of the loan.
Answered on Apr 18th, 2013 at 8:55 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The co-signer is liable for the remaining loan balance and can sue the primary debtor for what is paid.
Answered on Apr 18th, 2013 at 12:26 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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This depends on the applicable law. If Illinois law applies and the requirements of 815 ILCS 505/2S are satisfied, the cosigner may have no liability unless he or she was given written notice and a chance to take over payments before any collection action was taken. There are other defenses that may apply as well. Consult a consumer attorney.
Answered on Apr 18th, 2013 at 12:26 PM