Legal Question in Credit and Debt Law in Louisiana

Re: Co-signing for a ''Friend''

Unfortunately, you are not alone in this problem, I receive frequent calls from those who have extended themselves as co-obligors for credit for a friend or family member, only to have the relationship sour and be faced with the debt that was created by the other party.

Without reviewing the actual contract to which a party is a "co-signer", it is impossible for a attorney to evaluate the actual potential defenses. However, as a general matter, with respect to the debt obligation with the creditor, a party in your position is equally as liable as if the debt was actually incurred as a result of your own actions. If the debt is not satisfied with the creditor, the creditor can pursue collection action against the co-signer and his/her credit rating will suffer.

It may be possible for a co-signor to settle with the creditor, then pursue the actual debtor and seek reimbursement, however, if the debtor is in financial trouble and does not feel a moral obligation to reimburse, collection in this type of matter can be difficult and reimbursement of the debt in full should not be counted on.