What to do if my adult daughter had my mother-in-law co-sign on a school loan and then dropped out and dumped the bill in my mother-in-law’s lap?

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What to do if my adult daughter had my mother-in-law co-sign on a school loan and then dropped out and dumped the bill in my mother-in-law’s lap?

My daughter made 3 payments in 3 years. My mother-in-law has cancer and this bill has been hard on her. My husband and I have been trying to make the payments but he has been out of work for a year. Can my mother-in-law get a judgement against my daughter using legal aid? Also, once my mother-in-law has passed away, is this bill going to be transfered over to my father-in-law?

Asked on June 21, 2012 under Bankruptcy Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If only your mother-in-law signed the loan for your daughter as a co-signer, your father-in-law is not obligated on the loan. However, the marital estate of your in-laws would be liable for the loan under the laws of most states.

I suggest that your mother-in-law consult with an attorney who practices contract law about a lawsuit against your daughter for the monthly payments made for your daughter on her student loans. If your mother-in-law cannot afford an attorney to assist her, she should consult with the nearest "legal aid" office near where she lives regarding the matter you have written about.


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