co signing for a loan.........
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co signing for a loan.........
| Mon, 07-28-2003 - 4:40pm |
My mom co signed for a loan for my sister. My sister doesnt want to pay the bill. She has the $ but wont pay it out of spite. Now there after mom for the $. Mom is on a fixed income. Can mom hire a lawyer to get out of this or is she stuck having to pay it or be sued?
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How much are we talking about here? What was it for? Why won't your sister pay?
It is pretty crummy of your sister to do this.
Your mom is stuck with the bill, because she made a mistake co-signing. If she doesn't pay, she'll get bad credit, along with your sister. You can get out of debt, by going to Consumer Credit Counseling, where they will pay the full balance, and you make up a deal with them to pay little by little or as much as you can able, until it's paid in full.
A lawyer won't do anything, that means you'll pay a fee AN EXTRA bill, to the lawyer who will just type out a paper with his letterhead, mail it but your mom STILL OWES AND OWES AND OWES. The sooner she pays for it, the less it's gonna cost in the future. If not, there's finance charges, late fees, added to it and it will grow like trees. I suggest, your mom just pay it all off, and get it over with, just write it off as INHERITANCE.
How much is the bill for?
Dream
Why does the bill have your sister's husband's name on it? Was he on the original loan? Are you sure this is the same debt?
If your sister won't pay for it, and your mom cannot, I have a few suggestions:
1) You pay it and sue your sister. You may never see the money, but you will at least stop your mom from getting her credit ruined. This amount should be small enough to be in small claims court in most states so you won't need a lawyer.
2) Have your mom call the credit company and explain the situation. Tell them that while she cannot pay the whole amount, she can pay XXX per month. Have them write up a new contract. While they may up the interest, it may stop a whole host of problems.
3) Forget about it. Have your mom and sister keep ignoring this. They will keep getting notices. Eventually, collectors will call. Then, the company will write this debt off or sue your mom and sister. Either way, both their credit will be ruined. If your BIL is on the debt as well, his credit will also be ruined. I don't reccomend this option, but it is a choice. The only good thing about this option is that your sister has a whole lot of life ahead of her and ruined credit at a young age is a lot worse than at an older age. Of course, her credit must have been pretty bad to begin with since your mom had to cosign.
Whatever you choose, remember this and don't ever, ever cosign for her when she asks. And trust me, she will ask!
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