Legal Question in Credit and Debt Law in California

Guantee of Repayment of a Personal Loan

I loaned money to an individual I'm in a co-habitating relationship with. A document was produced, which I drafted, stating the dollar amt. loaned and the payment due date which was signed by both parties. The due date is over a year past. The relationship is close to terminating and I plan to move out of state hopefully in the next two to three months. What I'd like to know is: do I have any legal recourse in making sure I get paid? The amt. is somewhere around $5,000. In addition, there is a car loan in my name for the "other" person, who also makes the payments. He filed bankrupcy and was not able to qualify for a car loan, so the loan is in my name. Is there any legal recourse available so I have no financial obligation, i.e. either selling the car or obtaining a new loan without my credit and my name on title?

I'd like to cover myself and make this breakup as smooth as possible. If it's relavent, we've been a relationship for 4 years & 10 months. We have no other legal papers signed by both or other property owned by both parties.

Is it worth my while and expense to hire an attorney for the above?

Thank you.


Asked on 1/25/00, 5:55 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Guantee of Repayment of a Personal Loan

Go to small claims court right now over the $5,000 note. There will be very little you can do about it once you leave the state. As far as the car loan, I guess you could sell the car to pay off the loan but as long as the other person is making the payments and not violating the agreement they have with you, you really have no cause to take any action against them. you volunteered to be the one on the hook for the loan and you got what you asked for.

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Answered on 1/26/00, 12:45 am


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