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Estate trying to collect a presumed debt...

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  • Estate trying to collect a presumed debt...

    *Canadian*
    My friend had a person co-sign a student loan for him. He ended up defaulting on the loan and the co-signer has been paying the loan for about 10 years now. There is still a balance on the loan. The co-signer has recently passed away. My friend hasn't received any paperwork yet but he has been contacted by the executor of the co-signers will and it looks like the co-signers estate is trying to collect the full amount of the loan from my friend. Is this possible?
    Last edited by Tracy71; 11-21-2012, 07:45 AM.

  • #2
    This is Canada - prob. more or less same as in the US. If the friend defaulted on the loan, the co-signer is responsible for paying/they can come after the co-signer for payment. However, the co-signer can try getting their money back from your friend as the debt was really theirs.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      The cosigner is deceased. While alive he never once tried to collect the funds or even talk to my friend about the loan. It is the executor of the will who just happens to be my friend's ex that is telling him he owes this money.

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      • #4
        Your friend needs to talk to a local attorney. The attorney will need to review the documents in question.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          Agree that it wouldn't hurt to talk to an attorney - now (or definitely after your friend receives paperwork). However, the co-signer's estate can certainly "try" to get the money paid by the co-signer from your friend.

          Per my reference, the "estate" of the co-signer can try suing the "original" signer for repayment of any money paid by the co-signer on these types of loans. They may or may not win.
          Last edited by Betty3; 11-21-2012, 12:18 PM.
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

          Comment


          • #6
            Also, the executor is arguably legally required to try to recover the debt. It would arguably be a breach of fiducary responsibility to not try.
            "Reality is that which, when you stop believing in it, doesn't go away".
            Philip K. **** (1928-1982)

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            • #7
              I agree with that. That is what my ref. more or less says.

              Tracy, I knew the co-signer was deceased - in my first post I was talking about co-signer's estate.
              Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

              Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

              Comment

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