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Default on a Loan

Discussion in 'Other Debt, Collection, Garnishment' started by Janet Foerster, Feb 5, 2019.

  1. Janet Foerster

    Janet Foerster Law Topic Starter New Member

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    Jurisdiction:
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    I have elderly parents with serious health issues that tried to help my brother by signing on a loan for a horse tailor that he could not purchase due to his poor credit rating. The company selling the tailor was aware of this. My brother was making the payments until his oilfield job went under. He still made pmts for awhile but eventually had to default on the loan. My parents didn't understand that it was their responsibility to continue making pmts. The trailor was repossessed and the loan was sent to Collection. My father has received a notice to appear in court. He is very stressed because he lives about 200 miles away and has no way to get there. He's going blind and has congenital heart failure. He is going to write the judge to let him know. If they are unable to make payments, can their retirement (railroad/SS) be garnished?
     
  2. zddoodah

    zddoodah Well-Known Member

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    Why would a horse need a tailor?

    Well...yeah...that's typically the reason for requiring a co-signer.

    What did they think they were signing up for? Did they bother to read the document(s) that they signed? Any reasonable adult should understand what it means to be a co-signer.

    "Retirement" is a state of being that is not susceptible to garnishment. Assuming "SS" refers to social security benefits, that is also not susceptible to garnishment. The same is true of most, but not all, types of retirement benefits.
     
  3. adjusterjack

    adjusterjack Super Moderator

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    It won't make any difference. If he doesn't show up to defend, the creditor will get a default judgment. Even if he does show up to defend, he guaranteed the loan so the creditor will get a judgment anyway.

    No.

    And I'm adding your other question here because it's all the same topic: debt, and deleting the other thread.

    No, the estate will be responsible, but the estate will have to pay the debts, to the extent that the estate has assets to do so, before the heirs get anything.

    Please keep all such future discussion to this thread. Thanks.
     
  4. army judge

    army judge Super Moderator

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    In Texas (probably the entire nation) a private creditor can't levy against Social inSecurity payments or Railroad Retirement bennies.

    Your parents could sue your deadbeat brother in small claims court, their deadbeat son.

    Even if he fails to pay, they can make his life more miserable than he made theirs.
     
  5. Janet Foerster

    Janet Foerster Law Topic Starter New Member

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    Thank you but unfortunately they are enablers. He is however going to have a rough time when they're gone.
     
  6. army judge

    army judge Super Moderator

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    Some of us help the killer by allowing him to use our weaponry and even digging our own graves.

    That said, people have many reasons why they do something.

    I learned as a 10 year old, if I'm not involved, to only mind my own business.
     

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