Legal Question in Credit and Debt Law in California

in 2010 my stepson defaulted on a rental agreement and was taken to court and the property owner won an unlawful detainer suit and a money judgment for $4,775.00.

Unfortunately, my wife co-signed the loan (I did not know her at the time)and is a co-defendant. a collections agency (the original law firm involved in the suit) is attempting to collect. they have sent letters addressed to my stepson only, requesting payment and saying they will report to credit agencies if not addressed. my wife is not named in the letters, so apparently she is not on their radar yet, but I know at some point she could be. they have not mentioned levy or seizure of property or garnishment of wages, but I am afraid at some point they will come after my wife. what should I advise her to do while not yet on their radar? wait for them to contact her, or take initiative and try to negotiate a payment plan?


Asked on 4/19/16, 8:43 am

1 Answer from Attorneys

The first thing she should do is get a copy of the judgment and make sure she was included in it. In an unlawful detainer case, if the plaintiff fails to convert it to a regular civil case, they may be required to dismiss the contract cause of action in order to obtain a judgment for possession and rent-only damages. So while she was a co-defendant, she may not have wound up with a judgment against her. If the judgment is only against the son, end of story.

If she IS on the judgment, it's probably best to address it head on. Judgments accrue interest at 10%, so if it's possible to negotiate a payment plan or pay off to replace the judgment, it's usually wise to do so.

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Answered on 4/19/16, 9:58 am


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