Legal Question in Credit and Debt Law in Massachusetts
Cosigned Loan
I cosigned a loan 8 years ago for my brother. Since I cosigned, they have decided to go after me for the full amount. I am settling with the law firm but my question is, once I pay this debt off, it will be marked as paid on both our credit reports. Is there any way I can take my brother to small claims court to get this $3000 from him and have that amount put back on his credit report.
2 Answers from Attorneys
Re: Cosigned Loan
By co-signing, you guaranteed to pay the loan, however, you can sue your brother for the amount of money owed since he was the party who kept the money. If you are currently being sued, you need to join him as a party and claim against him.
Re: Cosigned Loan
Under Massachusetts law, the jurisdiction of small claims court does not exceed $2000, unless the action is for property damage to a motor vehicle resulting from an auto accident. Seems you could bring an action in District Court against your brother for indemnification of the loan proceeds you paid as guarantor of the original loan. If you obtained a successful judgment, it's possible a credit bureau would post that information on his credit report.
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