Legal Question in Credit and Debt Law in Georgia
I am a co-signer for $120,000 in private student loans that my ex stepson has stopped making payments on. I have made a couple of payments to avoid default in the hopes that he will start payments again. He has not and has now stopped communicating with me. In case of default the terms of the loan allow the lender to pursue the co-signer for damages before the borrower. So I am now making payments to protect myself. Can I sue my ex stepson? What can I sue him for? We have no agreement other than verbal that he, not me, was responsible for this loan. I am a resident of Georgia and he is a resident of California.
2 Answers from Attorneys
When you cosign a loan, you have made a promise to pay and should expect to pay. Lenders require cosigners when they are expecting a borrower to default, so you should have expected it.
As for suing him, unless you have a contract with him, what would be your basis? You can't sue someone for a non-existent agreement. You can try to prove a verbal one, but that is difficult. You'd have to go to his state to do it and unless you are sure he has the money and assets to pay, a judgement, even if you win, is a piece of paper.
Sadly you have learned why lawyers tell people to never co-sign a loan unless you plan to pay it.
Of course you can sue him. It might not be easy, him being in CA.
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