Legal Question in Credit and Debt Law in Ohio

Hello I have some questions regarding co-signer laws. First off who is responsible for paying the loan when you first get the loan? The co-signer or the person who the loan is for? Next question, if the co-signer is responsible for paying the loan and is unable to pay for the loan, what happens? Does the person the loan is for have to pay the loan?


Asked on 7/01/14, 3:34 am

1 Answer from Attorneys

Eric Willison Eric Eastman Willison

In Ohio, when you first co-sign for the loan, you and the debtor are both responsible to the creditor to pay the entire loan back. If the debtor defaults, then the creditor will sue you and the debtor, and will likely get a judgment against both of you unless there is a defense to the loan. You will have a cross claim against the debtor who defaulted, and you will likely will likely win on that claim.

But there is an old saying that getting a judgment is easy, collecting on it is hard. That is why people loaning out money want solvent cosigners.

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Answered on 7/01/14, 7:11 am


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