co-signors responsibility

[dave funel]

What is the name of your state Ms.

 

[dave funel]

I co-signed for a friend. Said friend is no longer paying the loan. Can I make minimal payments of say $5.00 per month to show payment is being made. Also, I am disabled with Mental illness, and was not totally positive of what it meant to "co-sign". I was not told by The bank the loan is with, what the responsibility would be. I'm not dumb, I have memory and concentration issues. I am on S.S.I,D. and the money involved would put me at risk on my own responsibility. Surely this person can be forced into garnishment instead of me paying their bill, while not being able to pay my own. Do I call a lawyer, which will end up costing money I don't have. thanks dave.

 

[adjusterjack]

Co-signing means that you guaranteed to pay the loan if your friend didn't. You can certainly make minimal payments if you want to but the loan will still be in default and you and your friend can both be sued for breach of contract. When the creditor wins the lawsuit you will both owe the judgment amount jointly and severally which means that the creditor can come after whoever is most vulnerable to collection.

Since you are on SSDI you probably don't have a job so there won't be any wage garnishment for you and your SSDI benefits have protection under federal law.

But even that has limitations that you need to understand by reading (and keeping) the following article:

http://www.nclc.org/images/pdf/older_consumers/consumer_concerns/cc_protecting_fed_benefits.pdf

Frankly, unless you are prepared to pay the usual monthly payments, I suggest you pay nothing because you'll just be throwing money away.