Co-Signers May Find Themselves Faced with Collections Lawsuits – Beware!
by
Gregory Mark Fitzgerald on Feb. 11, 2019
Bankruptcy & Debt Credit & Debt Bankruptcy & Debt Collection Bankruptcy & Debt Bankruptcy
Summary: Even if you trust the person you're co-signing for, circumstances out of their control could render them unable to pay. If a creditor is unable to collect from the primary borrower, they have every right to pursue the co-signer.
"Certain types of loans may require co-signers if the original borrower has not built up enough credit or has a low credit score. The lender may agree to the deal if the borrower has solid backing in the form of a co-signer with extensive, positive credit history. A typical example of this scenario is a potential borrower asking a parent to co-sign. This could be for nearly any type of loan, and it is vital to understand exactly what you are signing on the dotted line for."
Read the entire article on the official Fitzgerald & Campbell, APLC blog.
