Legal Question in Credit and Debt Law in Michigan
I cosigned for a loan and the person never paid on it.
Creditors were calling my house all of the time.
I finally rolled the entire debt into a new loan in my name with the agreement this person
would start paying me back monthly, which only lasted 2 months.
I do have a notorized recognition of the debt and that she would be paying me a certain amount
every month until the loan is paid back in full. (I am not even charging for the interest that I am
paying on the loan) Do I have an legal action to take? This is thousands of dollars, too much for
small claims court. I try to email and make contact with her but she just ignores my emails and
never responds. Thanks KJ
2 Answers from Attorneys
You may need to file an action in district or circuit court depending on the amount and nature of the debt. If it is less than $25,000 file in district court. If it is greater than that file in circuit court. You will need to determine if there was a conversion of your property (probably not in this case) because conversion allows you to sue for treble damages.
Best of luck.
Since you were being asked to guarantee the debt in the event that the primary debtor defaults, the lender may have a claim against you, unless you keep paying. However, depending on what sort of agreement you have with the primary debtor it may be possible to institute a claim for reimbursement of what you paid to the creditor. You may also be entitled to the asset at issue if your name is on the title.
I would advise that you meet with an attorney to review all of the documentation to determine the best course of action.
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