Is there anyway to draw up a legal document protecting myself in a private loan deal?
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Is there anyway to draw up a legal document protecting myself in a private loan deal?
I took out a private loan with a family member as the co-signer and gave the family most of the money for a financial crisis. Now myself and the family member are at odds and he refuses to pay his portion back. Is there anyway that I can pay back my portion and legally hold him responsible for his own?
Asked on February 17, 2011 under Bankruptcy Law, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Ok so I am assuming that there was no paperwork prepared BEFORE the loan was taken out, correct? Or was there? Let me understand the facts here. You co-signed a loan for a family member to get them out of a financial bind. Now you and the family member have had a falling out and they will not pay the loan, leaving you ro hold the bag. If you are held to be "jointly and severally liable" to pay back the loan that means you are responsible for all of it - his and your portion. You can pay all of it and then sue the family member. But my concern here is what is the basis of the suit? Is it a loan document?I would consider getting some legal consultation on this matter as soon as you can. Good luck.
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