Cosigned! Now what?!

[stuck]

Hi all,
My husband cosigned on a student loan for his older sister ten years ago. He was 19 years old and single with a good job. Years later of course we are married and have a daughter. Lo and behold, he was just served papers saying he's being sued because his sister has hardly paid a dime, (her original payment amount was $10 a month, TEN DOLLARS?!!!!). She has hardly paid any of it, even though she has been working, lives with someone with an excellent job, has been going on vacations, and NEVER goes without. Interestingly enough, she quit her job the week before the lawsuit (we suspect she may have known it was coming). We called her immediately and she right away set up a payment plan. However, we still have to go to court. I am wondering if there is anything we can do/say that will make a difference in how they approach the case? Because of her quitting her job and not being legally tied to her significant other she'll be able to stand in court and say she's a jobless, single mother--as if she shouldn't be responsible! Does any of that make a difference if we can gather that information and present it? Or, are my husband and I stuck? We have student debt of our own that we're working very hard to pay off. My other question: we have a few thousand dollars in emergency savings--should we immediately pay it towards our own loans? So it's not sitting there to be taken? Please, we would appreciate any advice!!

 

[disagreeable]

Any relief, would be negotiated prior to going to court. Court is for an official judgment and to initiate collection.

 

[army judge]

If you have successfully been served, then simply go to court.
See what this is all about, then decide what you should do.
You can always delay things by asking the court for time to hire an attorney.
Whatever you do, don't agree to anythjing.
I'm not sure what kind of loan you signed, as many NON-STUDENT loans get lumpoed into the student loan category.
This might be a loan for educational purposes, but not one underwritten by the government.

If I were you, I'd check with the court (online or via telephone call) and determine that such a case is scheduled for the date and time you believe it is.
Why do this?
Many SCAMMERS create FAKE documents to entice the uninformed and trusting to GIVE them money.
In this case, verify before doing anything.
If it isn't legitimate, do nothing.
If it is legitimate, make an appearance.

Don't agree to settle, whatever you do.
As a cosigner (assuming its legitimate), you can always bring a motion to add the deadbeat sister to the lawsuit.

But, before you "what if this", "what if that", VERIFY, then determine what you should do.

 

[army judge]

If you have successfully been served, then simply go to court.
See what this is all about, then decide what you should do.
You can always delay things by asking the court for time to hire an attorney.
Whatever you do, don't agree to anythjing.
I'm not sure what kind of loan you signed, as many NON-STUDENT loans get lumpoed into the student loan category.
This might be a loan for educational purposes, but not one underwritten by the government.

If I were you, I'd check with the court (online or via telephone call) and determine that such a case is scheduled for the date and time you believe it is.
Why do this?
Many SCAMMERS create FAKE documents to entice the uninformed and trusting to GIVE them money.
In this case, verify before doing anything.
If it isn't legitimate, do nothing.
If it is legitimate, make an appearance.

Don't agree to settle, whatever you do.
As a cosigner (assuming its legitimate), you can always bring a motion to add the deadbeat sister to the lawsuit.

But, before you "what if this", "what if that", VERIFY, then determine what you should do.

 

[stuck]

Thank you for the responses! Does anyone know what it would take to bring a motion to add his sister to the lawsuit? I am planning on calling the plaintiffs today to provide them with her address if they do not have it. On the papers we received there was a blacked out name above my husbands, it made me wonder if they weren't planning on serving her papers as well (it could only be her name), but cannot find her!? Anyway, when I talk to them I'm also hoping to get a copy of this agreement my husband signed to see what the details of the loan are. What would the difference be if it was a loan for educational purposes vs. an actual student loan? Would it make a difference in our obligations?

 

[army judge]

If the loan is a genuine student educational loan (backed by the Dept. of Education), they rarely require co-signers. In fact, I've never heard of a co-signer on such loans. That's not to say they don't, I have never seen pigs fly, either. Educational loans guaranteed by the DoE, have no time limits n collecting. They don't sue, they simply place lens on your junk, attach your wages, and intercept your tax refund money.

If it's a rip-off "loan" from certain unaccredited and proprietary schools, they are time limited to collect such debts. Each state has their own statutory limitations on collecting such debts. For instance, if your state as four years on contract debts, many do, this debt is uncollectable.

If you Google the name of the debt collector or scam lawyer on your documents, it'll help you determine if this is a scam. Generally, these shysters get you to agree to pay a small amount. If you do that, you have ratified the debt. Now they can readily and legally sue you. My guess, they're bluffing you into ratifying someone else's (deadbeat sissy's) debt.

Talking to the scammer is foolish. I'd advise against that. Investigate the alleged suit DIRECTLY with the court. Many times these scammers send fake summonses. If you weren't served by a sheriff, Marshall, or law enforcement official; the suit is likely to be a fake. Whatever you do, don't communicate with the scammer. Do investigate (GOOGLE) the scammer's name and see what's being discussed.


Sent from my iPad3 using Tapatalk H

 

[mightymoose]

A couple questions.

Was this a federal loan, state loan, or a local bank?

If not a federal loan, when was the last payment made toward the loan?

If it has been more than a few years since the last payment then you might be able to argue that the statute of limitations has expired.

I believe federal loans do not have a statute of limitations and some sort of payment plan will have to be worked out.

As a cosigner your husband has equal responsibility for repayment of the loan even if you never actually received a single dollar of it. Your best hope here may be for a non federal loan with an expired statute of limitations.