Default on a Loan

Janet Foerster

New Member
Jurisdiction
Texas
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?
 
I have elderly parents with serious health issues that tried to help my brother by signing on a loan for a horse tailor

Why would a horse need a tailor?

he could not purchase due to his poor credit rating. The company selling the tailor was aware of this.

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

My parents didn't understand that it was their responsibility to continue making pmts.

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.

If they are unable to make payments, can their retirement (railroad/SS) be garnished?

"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.
 
He is going to write the judge to let him know.

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.

If they are unable to make payments, can their retirement (railroad/SS) be garnished?

No.

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

When my parents pass, will I be responsible for their credit card debts?

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.
 
If they are unable to make payments, can their retirement (railroad/SS) be garnished?

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.
 
Thank you but unfortunately they are enablers.


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.
 
Back
Top