Legal Question in Credit and Debt Law in California

My elderly mother wants to loan some money to her young granddaughter to buy a car.

My niece is a responsible young person but anything can happen. If she was unable to make the payments, how liable is my Mother, really? She is 87, my niece is 21, if my Mom's credit is destroyed because she won't take over payments, so what? She doesn't need that kind of credit at her age. Would she have to declare bankruptcy? Could she be sued?


Asked on 10/30/14, 11:02 pm

1 Answer from Attorneys
Scott Jordan Jordan Law Office

Why would you mother need to be on the loan for the car? If she is only loaning money, she does not need to be a co-signor on the loan. If your niece defaults, it would have no effect on you mother at all.

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Answered on 10/31/14, 9:37 am


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