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  1. #1
    Join Date
    Dec 2008
    Location
    Chicago
    Posts
    1

    Default Co-Signer Paying / Can He Collect

    My question involves collection proceedings in the State of: Mass.

    I'm a government attorney who's never done civil/collections and was presented with the following, hopefully someone can confirm my initial thoughts:

    A friend co-signed for his god-daughter's student loans (about 10k worth). He wanted to help her go to school, stay out of trouble, and get her degree.
    She agreed she would stay in school, graduate, not get pregnant until she got married or was ready, and would pay the loans back.
    Long story short:
    She got pregnant and dropped out.
    She doesn't work at this time (though she has, and could if she was willing).
    She has refused to make payments on the loan and my friend has been footing the bill every month when notified by the lender that the payment is overdue.
    She's now married a semi-deadbeat who has his own issues and they're being essentially supported by his parents.

    It's clear, due to breakdowns in the "family" that she has no intention of ever paying the loan. She is aware that her Godfather is: 1) on the hook for it; and 2) making the payments and she doesn't care. She is not willing to take any action to potentially remove him from the loan NOR will she take action to defer or otherwise take care of the debt herself. She refuses to have any contact with the lender at all.

    She has no assets, while my friend does. It seems clear that if he stops paying, the lender will simply come after him. Am I correct in thinking that while making these payments is annoying, it's his best course of action under the circumstances?

    Assuming he continues making the payments and eventually pays the loan off, can he succesfully file suit and obtain a judgement against her (and hopefully some day enforce/collect something)?

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Co-Signer Paying / Can He Collect

    Yes, he is going to need to continue to make the payments so it doesn't mess up his credit. As a co-signer, that is what happens when the other person doesn't pay.

    He can try suing her for re-payment & if he gets a judgment against her, hope she has some income/assets he can collect from before the judgment SOL runs out. However, he can't take the small claims court route in Ma. - the maximum amt. to sue for there in Ma. is $2,000.

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