Legal Question in Credit and Debt Law in California

Re: Co-signer on a loan for a relative

Why would the creditor remove your name? You are the co-signer, and there is a reason for that - most likely, because your daughter could not qualify on her own.

And now you know why you never loan money to (or co-sign for) family or friends.

If she defaults, you start making the payments yourself in order to protect your credit. You should ensure yourself that she is providing you with proof that the payments are being made (so that you are not surprised with a late payment report to your credit, or worse, a delinquency or lawsuit).

Your new son in law may be able to convince the creditor to remove your name and replace it with his, but I would not expect the creditor to agree.

Good luck.

Re: Co-signer on a loan for a relative

The only way, outside of bankruptcy, you can get your name removed from the loan is if your daughter refinances. Should you fail to receive the $9,000 payment upon the settlement check being sent to your daughter's husband, you can file a lawsuit against your daughter. Once you get a judgment, you can seize her husband's bank account. Should your daughter default in the payments of the $12,000, you may sue your daughter.