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What Can You Do If You Are Sued for Debt that is Not Yours?
Often times taking on the responsibility of a cosigner means taking on a debt that is not yours and not wanted. When you cosign a loan for someone you can be just as responsible for the debt as they are even though the loan isn’t yours. Being in this situation can be frustrating because it forces you to pay the loan or suffer the consequences which can be legal and financial strain. When you are a cosigner and the primary borrower doesn’t pay then you take on the responsibility as the borrower and are forced to fulfill the loan obligation.
Should You Pay If You Are the Cosigner?
If you have gotten into the situation where you are the cosigner on a loan then you are obligated to pay should the borrower not live up to loan. Sometimes people do not know how serious the situation is when they cosign for a person. Often time’s people want to try to help a friend or family member that does not have good credit and are unable to get a loan with out help. Now if you are the cosigner chances are that you have a good grasp on your financial well being, but now you are putting your neck on the line. If you are one that does not like to take a risk with money and your credit then you should not venture into becoming a cosigner because these both can be affected if the borrower does not make the payments toward their loan.
How Much Trouble Am I In?
If you neglect to make the payments towards the loan because you feel like the borrower is responsible then you may in fact find yourself in some legal problems. Since you cosigned a loan you have a responsibility to fulfill the repayment of the loan that the borrower was unable to pay. A situation such as this can put a major stain on your credit history and hurt your financial well being. It is better to pay off the loan that way it can not hurt you anymore and then try to arrange some way to collect from the primary borrower. In some cases this may mean taking the primary borrower to court just to set up some way of getting your money back. The tricky thing about this is that if it is a friend or family then you might not want to do this because it can ruin a relationship.
Paying Off a Debt
The best way to help out a situation where you are stuck with a bill is to talk with the lending company to try and work out a payment plan that works with your funding. Since they may see that you got stuck with the bill they will hopefully work with you and your finances to create a solution so that they get their money and you do not go into debt.
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