Were You a Co-signer on a Loan in Default? We Can Help.
It seemed harmless enough when you signed it, but being a co-signer on a loan or credit card can have terrible consequences if the primary borrower defaults. If the primary borrower has bad credit or a lack of credit history or sufficient collateral, the bank may require a co-signer. This can happen on:
- Credit Cards
- Mortgage Loans
- Business Loans
- SBA Loans
- Equipment Financing Loans
- And many more
Depending on the terms of the particular loan, if you are a co-signer, you are typically liable for the ENTIRE amount of the debt in the event of default. Many such loan documents will require that the lender first pursue the primary borrower before coming after the co-signer. But, chances are, the primary borrower doesn’t have the resources to satisfy the debt, which is why a co-signer was required to begin with.
Defending Loan Co-Signers in Arizona
There are very specific laws in Arizona about co-signers and what is required to bind the co-signer to the debt. This can be especially tricky when it comes to spouses and co-signing for a spouse. We understand the intricacies of Arizona law and know whether viable defenses can be used in your case.
In some cases, you may even have legal recourse against the primary borrower. In any event, we explore all avenues of defense and develop a comprehensive strategy to negotiate down and eliminate the debt without bankruptcy.
Potential Conflicts of Interest with Co-Signers
When we represent a co-signer on a loan, we will typically only represent that individual and not the primary borrower. This is especially true if the co-signer has legal recourse against the primary borrower. There are some exceptions to this, but you can rest assured that we have your and only your best interest in mind when negotiating a debt for which you are a co-signer.
If you were a co-signer on a loan that went bad, call today for a free consultation.