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Would a cosigner be liable for debt?


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2013-04-24 07:08:50
2013-04-24 07:08:50

Absolutely ! That's the whole point of someone co-signing the agreement. If the original person defaults on payments, the co-signer becomes liable !

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No, a co signor would not be liable. A co-buyer would be liable.

Unfortunately, no. For all co-signed debts, both signers are liable for repayment of the debt. When one party has their obligation discharged by bankruptcy, the remaining debtor becomes 100% liable for repayment of the balance.

No, I don't think you would ever be responsible for their taxes. You may be liable for their debt though... agreeably a different matter.

As long as the child is not a cosigner on the debt, the child is not responsible for parent's debt. The parent's estate would be responsible for the debt. Technically this could reduce the inheritance the child receives, but it is not the responsibility of the child.

No. A cosigner's only obligation is the debt incurred by signing the lending agreement.

Very generally speaking, in the U.S. a person is not liable for any other person's debt, unless that person is a cosigner on a loan or something.

A cosigner basically is a guarantor for the repayment of a loan or value and serves as cosigner of the debt. If the debtor fails to make payments or defaults, the cosigner is obligated to pay off the debt. No benefits for the cosigner, but cosigner benefits the debtor.

Yes. If the signer defaults on the loan, then you, as the cosigner, would be liable.

The estate is liable for the obligations of the deceased. They would have to settle the debts.

Yes. That is the point of the lender asking for a cosigner. The cosigner will have a repossession showing on their credit as well as the primary lender.

You are not personally liable for the debt. The estate is liable for the debt. If the law suit results in payment, it would have to be used to settle the debts.

No * In most cases, yes. Secured debts such as a vehicle are not dischargeable in BK. Therefore, the primary borrower is only temporarily avoiding action by the lender. If the cosigner is held responsible for the default he or she may sue the primary borrwer for damages incurred. ==ans == Yet another take: The cosigner is a co-borrower. By the primary defaulting he actually gets no more debt than he already had and agreed to be liable for. Whether he would have a claim for paying having to pay the debt he agreed to be liable for before the BK, instead of the primary, would depend on the (hopefully written) agreement between those two parties. While unlikely, it is possible that is noted in the loan document.

# I have never had to provide a cosigner agreement to someone who is cosigning a loan. I am talking about Tx, NY. and Kentucky. If you signed the same promissory note with the other person, then you are both responsible! CORRECTION: If you are speaking of the Notice to Cosigner below: Notice to Cosigner You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. It is against the FTC rules and against the law not to provide have have a potential cosigner sign.

When you cosign for an automobile purchase you are typically liable for an automobile repossession in Michigan. The reason why is because you are responsible for car payments as a cosigner if the primary debtor cannot pay.

The creditor wil try to get the debt from the cosigner as well.

A cosigner can only sue if the primary borrower signed an agreement for the cosigner to pay the debt and then be reimbursed. The consignor can not sue if they, at their own liberty, decided to just pay the debt.

You will also be liable for any deficiency balance

Yes, you are still liable on the debt. Unless the debt is beyond the statute of limitations (which varies by state) or it is discharged in bankruptcy, you are likely to be liable on the debt. If the debt is forgiven/cancelled (you would then not be liable) then you will likely receive a 1099-C in the mail and it may be taxable income. Consult with a tax professional if that is the situation.

No. The car is not your property, nor do you have legal authority to sieze property. It would be considered grand theft. As a co-signer, you agreed to be just as legally liable for the debt as the borrower. That's why it's a good idea to NEVER co-sign ANYTHING.

In some instances, yes they can. Is the spouse listed on the debt? An example would be a joint loan or credit card. If so, that makes the spouse legally liable for the debt. If not, then no, the wages cannot be garnished because the spouse is not legally liable for the debt.

No you are not, If you deglared bankruptcy, that cancels your debt

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