More Trouble!

[DaveQuestions1]

What is the name of your state? Florida

I'm sorry to be hogging up the board so much, but just after my post about possibly being sued because of some crap a credit repair agency I hired stirred up, I learned that my co-signer on my student loan (who has been paying the loan since 2002/2003 - really rough time in my life might I add, ended up homeless etc.) could have tracked me down and will be suing me for not paying my student loan as we had agreed when the loan was created in 2001. Can my co-signer do this? They have been paying the loan for me since 2002, on time evey month.

What are my options to settle this? My co-signer and I are not on speaking terms. I think I'm going to have a breakdown, as it always is in my situation, when it rains it pours!!


Help

[CALIF-LAWPRO21]

Originally Posted by DaveQuestions1

What is the name of your state? Florida

I'm sorry to be hogging up the board so much, but just after my post about possibly being sued because of some crap a credit repair agency I hired stirred up, I learned that my co-signer on my student loan (who has been paying the loan since 2002/2003 - really rough time in my life might I add, ended up homeless etc.) could have tracked me down and will be suing me for not paying my student loan as we had agreed when the loan was created in 2001. Can my co-signer do this? They have been paying the loan for me since 2002, on time evey month.

What are my options to settle this? My co-signer and I are not on speaking terms. I think I'm going to have a breakdown, as it always is in my situation, when it rains it pours!!


Help

My response:

I cannot believe you're asking, "Can my co-signer do this?" No, of course not! Other people must always pay your debts and, if they sue you, they must ask you for your permission!

If they don't get your permission, then they must keep paying your debts. I mean, that's was co-signers are for, right?

"My co-signer and I are not on speaking terms." Now, that's hard to believe. I wonder why?

IAAL

[DaveQuestions1]

Anyone with any insight?


Thanks,
DaveQuestions1

[Ladynred]

The meaning of being a co-signer is that THEY must pay if YOU (the primary) does not. That is the nature of the beast. He/she can sue you, but I doubt they'd win since they DID sign on the dotted line to pay up if you didn't.

[Ladynred]

I disagree. The co-signer AGREED to be liable for the payments when they signed those loan papers as co-signer. Now he/she is going to WHINE because he/she has to actually PAY as he/she AGREED ??? I doubt very seriously the co-signer would win any lawsuit - he/she made his/her bed, now he/she is mad because s/he has to LIE in it ?? If you can't take the financial burden, NEVER co-sign a loan for ANYONE - not even family !!

[CALIF-LAWPRO22]

Originally Posted by Ladynred

I disagree. The co-signer AGREED to be liable for the payments when they signed those loan papers as co-signer. Now he/she is going to WHINE because he/she has to actually PAY as he/she AGREED ??? I doubt very seriously the co-signer would win any lawsuit - he/she made his/her bed, now he/she is mad because s/he has to LIE in it ?? If you can't take the financial burden, NEVER co-sign a loan for ANYONE - not even family !!

My response:

No, no, no. You're misunderstanding. A co-signer only agrees to pay the creditor in the event of a Default. It has nothing to do with the fact that the third party still owes the debt. In other words, instead of owing the creditor, now the third party owes the money to the co-signer. The co-signer doesn't give up their rights to go against the the original debtor. That would be ludicrous under the law, allowing a debtor, like our writer, to reap an "unjust enrichment." It's a "shifting" of who owes whom - - that's all.

The remedy is limited to special damages for readily ascertainable economic loss on an unjust enrichment theory--i.e., restitution for amounts expended (if any) in performance of the agreement. [Dunkin v. Boskey, supra, 82 Cal.App.4th at 195-198, 98 Cal.Rptr.2d at 60-63]

I think you better rethink yourself.

IAAL

[DaveQuestions1]

Excellent precedent citing, but uhm ... is that applicable under Florida State Law?

I'm just guessing here, but by virture of your name, it appears you might be more versed in California State law... In case I was not clear in my original post I'm in a state called Florida (just a thought)...

[CALIF-LAWPRO26]

Originally Posted by DaveQuestions1

Excellent precedent citing, but uhm ... is that applicable under Florida State Law?

My response:

It's probably applicable everywhere. It's a very common principle of law. Did you really feel like testing the equitable theory in a courtroom? C'mon, let's see if it flies!

IAAL