If my ex was the primary signer on a loan thatI co-signed on and settled with a collector, can the collector still pursue me?

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If my ex was the primary signer on a loan thatI co-signed on and settled with a collector, can the collector still pursue me?

I was contacted by a bank to settle on a loan for which I co-signed (my ex being the prime signatory); their offer was to clean their presence from my credit report and avoid legal action. I was contacted first. They got a hold of my ex 2 weeks later on my request and she agreed to settle with them. However, I talked to them today and they are still pursuing the settlement they offered me. I have requested documentation from them and still don’t have it. I’d rather not have legal action against me; I’d like this solved and will still pay if legally obliged but something doesn’t seem right.

Asked on November 2, 2011 under Bankruptcy Law, New Mexico

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The problem that you face is that you were the co-signer on the loan with your ex. Since she apparently has settled the debt claim with the bank, the bank is still free to go after you for the amount that it claims is owed. Your situation is that due to you signing on the loan, you are responsible for its payment even though you did not really get a benefit from it.

You need to remember that the bank cannot get 100% on the dollar from you given its settlement with your ex. You are entitled to an offset credit with respect to any amount agreed to by your ex assuming that the bank wants full payment owed from you.


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