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Suing A Person On A Dba

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baya620

Junior Member
What is the name of your state (only U.S. law)? TEXAS

I will try to make my scenario as brief as possible. Last August my aunt came to me regarding a small business loan for her dba. I had a better credit rating so I applied for the loan as primary after she added me to her dba. The initial loan paper says the DBA name only with my name and her name as the applicants. I am primary. She is on a a co-applicant. She had to leave before the closing and she was supposed to go back and sign as a guarantor but I am not sure if she did. We listed business assets on the loan request. We split the money and she said she would make the first few payments but she didnt. I have 11 text messages that she sent to me saying she never knew the loan was past due, saying that her other business partner was supposed to making her payment every month. The lender was threatening a lawsuit so we went into arbitration and as we have started paying it back she has stopped paying. She has paid 750 towards it but owes a balance of 2700. The lawfirm that filed the arbitration sent 2 certified letters and my aunt signed for one of them. I wasn't even in the state when this was happening. Am I stuck with this loan? My cousin is telling me to go to small claims court but I am not sure if I have a case. At the bottom of our DBA it says that all members on a dba are responsible for the debts incurred by the DBA but I am not sure if that means anything.
 


You are absolutely liable on the loan, and must make all the payments if your aunt does not. The bank/lender is not required to pursue both you and your aunt; it can chose to pursue only one of you.

However, you can sue your aunt for her 1/2 of the payments, but only after you make the payments. In other words, if you have made 3 payments, you could sue her for 1/2 of three payments.
 

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