What Happens If You Cosign a Loan and the Other Person Doesn’t Pay?

Your Rights, Options, and Legal Help in California

Worried about co-signing a loan? Discover what happens if the borrower defaults, your legal rights in California, and how a bankruptcy attorney can help.

Your friend asked you to co-sign their auto loan, and now they’re behind on payments. Panic sets in. You helped them get the car they needed, but now you’re on the hook for the debt. If the borrower doesn’t pay, you might even be contacted by a debt collector. What happens if you co-sign a loan and the other person doesn’t pay? Understanding the legal consequences of co-signing is crucial.

Continue reading “What Happens If You Cosign a Loan and the Other Person Doesn’t Pay?”