Appellate Practice Attorney serving New York, NY
You were the cosigner of the loan, meaning that you were obligated to pay at least your share (depending on how the deal was structured, you were probably the principal obligor and obligated to pay the whole amount, while your parents were guarantors). You didn't, and your parents were forced to pay your share (whether that share was 100% or only 50%). They thus now have a claim against you to recover the amount that they lost becasue you didn't fulfill your contractual obligation. Essentially, having paid off the loan, your parents now step in the shoes of the lender.
Answered on Sep 13th, 2018 at 1:00 PM