If I co-signed for a loan for my niece 6 years ago but she dafaulted and a debt collector is harrasing me to pay, van it taketaking my entire savings?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I co-signed for a loan for my niece 6 years ago but she dafaulted and a debt collector is harrasing me to pay, van it taketaking my entire savings?
Asked on March 27, 2012 under Bankruptcy Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
As a co-signor, you are as liable for the debt as the main signor--the creditor or its collections agent may seek to recover the debt from you. If they sue you and win and you do not pay, then there are a variety of tools which can be used to recover the money from you, including levying on a bank account (taking money from a bank account of yours), garnishing wages or income streams, executing on personal property (forcing its sale), or putting a lien on real estate you own. There are some types of income or assets typically exempt from collections, such as money in certain retirement plans/pensions or social security payments, but subject to those exemptions, you could potentially lose your savings.
You, in turn, may sue your neice to compel her to pay the amounts which she should.
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.