If the primary borrower dies before repaying a loan, is the cosigner liable for repayment?

Asked on May 24, 2012 under Bankruptcy Law, Louisiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whenever the primary borrower fails to repay a loan, whether due to death, insolvency, or simply refusing to pay, the lender may hold the co-signor liable for the remaining balance on the loan--that's what makes co-signing so dangerous. The lender could also try to recover from the primary borrower's estate, either instead of, or more likely in addition to, suing the co-signor.


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