Cosigner Blues

[brokedaddy]

My wife cosigned student loans for my stepson. I was fine with it, but kept a respectful distance because of issues with the divorce. I trusted that they knew what they were doing. Big Mistake !!
Because we were cosigners, we did receive and routinely dismissed calls and letters from finance companies wanting to sell consolidation services. Some of these turned out to be delinquent notices.
Stepson cannot make payments and has requested a one-year forbearance on his loans. I understand that as cosigner my wife has an obligation to pay this loan if Stepson cannot. That's OK; he is a good kid just a bit over his head. But I still want to protect ourselves.
Here are my questions; can we take some sort of legal means to limit his credit? Can we take legal action to prevent his father from cosigning car loans for him? Can we force a collection agency to garnishee his wages first before coming after us? Can we garnishee his wages? Are there any other legal remedies that I am unaware of?

 

[Cvillecpm]

But I still want to protect ourselves.
Here are my questions; can we take some sort of legal means to limit his credit?

You can cancel credit cards; however, loans that are in existance are probably not negotiable.

Can we take legal action to prevent his father from cosigning car loans for him? WHY?


Can we force a collection agency to garnishee his wages first before coming after us? NO - they will come after the easiest - you.

Can we garnishee his wages? Probably not without a judgement

Are there any other legal remedies that I am unaware of?

Frankly, a discussion with him is your best solution....offer to pay off the student loan and advise him you will make no further credit agreements on his behalf...if his father wants to help, that is between them.

 

[brokedaddy]

Thanks for the reply, here's more questions

Paying off his loan is out of the question. We need to stop his father from co signing car loans for him. He is a good kid but irresponsible and he gets overpriced car leases. He focuses on the car loan, rather than the student loan.
Look, I'm not a lawyer, when you reply to: Can we garnishee his wages? Probably not without a judgement. You mean after he defaults and we start paying, we sue him?
This is for a huge amount and we are facing financial ruin. Thanks for your help.

 

[lwpat]

First of all this is your wife's debt, not yours. They can come after her but not you and then there is the homestead exemption. Depending on the state, they can get a judgment and collect from her per the laws of your state.

If you have your money in a joint account with her, you need to move it into an account in your name only.

The best option I see is for you to make the payments and hope to collect it back from him someday.

 

[brokedaddy]

Thanks for the reply, but....

Both replies say pay the debit back and hope for the best. It won't happen period. Assets, bank accounts, not the issue. The issue I want addressed is how can we collect from someone who has a good job (and is a college graduate) but is merely refusing to pay a debit. All I want are options to ponder, as we are seeking local legal council. Thanks again!