Legal Question in Civil Litigation in California

suing for a loan

My Mother In Law was a cosigner for her twenty-three yr old granddaughters loan. Her Granddaughter stopped paying, and my MIL had no idea she did, until she received court papers. The loan was for $5000, but now is $9500. The loan is now going to be paid in full by my MIL, my question is, can my MIL sue for the $9500 and does she need an attorney to do this or can she file her own papers for court. We live in California. She doesn't have a lot of money. If she gets the judgement, can she have the granddaughters wages garnished?


Asked on 4/26/07, 6:35 pm

2 Answers from Attorneys
Daniel Harrison Berger Harrison, APC

Re: suing for a loan

This is the huge problem with co-signing for loans. Anyway, your MIL can seek reimbursement/indemnity from her grand daughters. She can sue in small claims, but the damages cap will likely be $7,500. If she wants the full $9,500, she will either need to hire an attorney or represent herself (which is dangerous) and sue in Superior Court. Once a judgment is obtained, there are several options for collection, only one of which is wage garnishment.

If your MIL is interested, have her contact us as we have handled several collection based matters over the years.

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Answered on 4/26/07, 6:45 pm
Lyle Johnson Bedi and Johnson Attorneys at Law

Re: suing for a loan

Suing in small claims court for the maximum amount $7,500 would probably be the best approach as the attorney fees for suing in superior court would exceed the $2,000 that she would not be able to recover. Small claims courts have clinics to assist parties in preparing for the trial.

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Answered on 5/09/07, 10:40 pm


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