Legal Question in Banking Law in California

I co signed on an unsecrue loan and my son also signed the loan papers. I declared bankruptcy and was granted this by the court. I am no longer legally responsible for that loan. Now my son is having trouble repaying the loan. The balance is about $11,000.00. This loan is with a very large US bank. If he just stops paying what can happen to him ?


Asked on 12/31/11, 12:48 am

2 Answer from Attorneys

First his credit will be trashed. Then he will be hounded daily by bill collector calls. If he still doesn't pay they will continue to add interest and fees. Then eventually if he still doesn't pay or file his own bankruptcy they will file a debt collection lawsuit. Once they win that, they can start garnishing his wages and going after bank accounts to collect the judgment. The judgment will also be interest bearing at 10% until paid.

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Answered on 12/31/11, 9:27 am


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