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!!
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!!