I am a co-signer on a bank loan and the original borrower cannot pay the $34,000 that is due - not now, nor ever. Now since the loan is in default/collections, it is due immedietly.
I had no idea he was not willing to pay, but the trouble now is they want all the money now, or $1,400 a month for 2 years. The most I can afford to give is $800 a month (50% of my salary) but it seems the bank is unwilling to negotiate anything less, before they take "other actions".
Any ideas? I also own no property, or have any other collateral to my name. I am willing to work with them, but I don't make enough to pay them all back at once.
2007-10-02 09:07:05 · 5 answers · asked by Rusty Nail 2 in Business & Finance ➔ Credit
This is what happens when you co-sign. I work in finance and see this every month.
Sadly for the co-signer there really is not a lot you can do, you signed the contract agreeing to be responsible for the loan if the primary signer defaults and that is what happened.
See if you can get another loan with your own bank at a longer term or see if they will refinance the loan in your name only for a longer term.
Then sue your friend for defaulting on the contract and ruining your credit.
2007-10-02 09:14:19 · answer #1 · answered by ? 7 · 1⤊ 0⤋
take you friend to court and sue him, but since you are the
co-sginer they will come after you. Now it is a Bank Loan
not a credit card so the rules are different. Your going to
have to get a lawyer and see if can find a way out for you.
I would look specifically for a Contract Law Lawyer.
Have the bank write you a letter stating they want 1400.00 a month for two years. (how did him and you get approved
if you can't afford the payment? And why isn't he paying?)
and that they Cannot work with you on 800.00 a month.
Live and Learn and get a Lawyer and sue your friend
2007-10-02 17:15:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
$34,000 sure is a lot of money. Since your account was already reported to the Credit Bureau, I would go to a Bankruptcy Attorney and file Chapter 7 and get over it. Let them deal with the original lender.
2007-10-03 03:04:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yet one more example of why you should never cosign unless you are willing to pay the debt if the person doesn't. Sorry, you're stuck.
They can take you to court and get a judgement against you, but if you don't have any assets, all they can really do is garnish your wages.
2007-10-02 16:41:10 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
You have found out why co-signing for someone is a no no.
2007-10-02 16:14:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋