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Property

Asked almost 4 years ago - Tacoma, WA

Four years ago I co-signed a buisinses loan for my friend for her mortgage banking company. Since she is not paying on the loan, the creditors are coming after me. I have a property in Tacoma, WA, and I do not want them to get a hold of it. What can I do to prevent that?

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Attorney answers (2)

Shelly Crocker

Reputation Level 11

Answered almost 4 years ago. Chapter 11 Bankruptcy Attorney in Seattle, WA.

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Probably your best solution is to try to come to some agreement with the creditors. Have you spoken with your friend about how she is going to approach the loan? Can you afford to make some arrangement or payments over time? Usually, if you are ultimately going to be liable, it might be in your best interest to try to work with the creditor rather than wait for them to take legal action against your property. Feel free to contact us if you would like further assistance in negotiating with your creditor.

Crocker Kuno PLLC

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Jonathan Alexander Sprouffske

Reputation Level 9

Answered almost 4 years ago. Bankruptcy Attorney in Olympia, WA.

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I think there are several questions that need to be answered in order to adequately respond to your question. Just a few of them would be:

1. Amount of the loan.
2. Any further written agreements you had between you and your friend.
3. Your friend’s ability to pay on the loan.
4. Value of the property you are trying to protect.
5. Your financial situation.

At the end of the day you will be liable on the loan if it is not paid in full. That is after all the purpose of companies requiring a cosigner. The amount you would be liable for will also include any additional fees or interest that has been added to the past due amount. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If the debt is ever in default, that fact may also become a part of your credit record.

I would start by contacting your friend to find out her status, and whether or not she anticipates paying.

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