If my ex was the primary signer on a loan thatI co-signed on and settled with a collector, can the collector still pursue me?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If my ex was the primary signer on a loan thatI co-signed on and settled with a collector, can the collector still pursue me?

I was contacted by a bank to settle on a loan for which I co-signed (my ex being the prime signatory); their offer was to clean their presence from my credit report and avoid legal action. I was contacted first. They got a hold of my ex 2 weeks later on my request and she agreed to settle with them. However, I talked to them today and they are still pursuing the settlement they offered me. I have requested documentation from them and still don’t have it. I’d rather not have legal action against me; I’d like this solved and will still pay if legally obliged but something doesn’t seem right.

Asked on November 2, 2011 under Bankruptcy Law, New Mexico

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The problem that you face is that you were the co-signer on the loan with your ex. Since she apparently has settled the debt claim with the bank, the bank is still free to go after you for the amount that it claims is owed. Your situation is that due to you signing on the loan, you are responsible for its payment even though you did not really get a benefit from it.

You need to remember that the bank cannot get 100% on the dollar from you given its settlement with your ex. You are entitled to an offset credit with respect to any amount agreed to by your ex assuming that the bank wants full payment owed from you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption