Legal Question in Credit and Debt Law in Indiana

wife's responsibility for co-signing of loan by spouse

Hello,

My spouse co-signed for a loan for a friend in the amount of about $20,000 for a mobile home. If the friend defaults, I realize the spouse if under contract to pay the loan per the agreement. What is my responsibility if my spouse should die? Can the company sue the estate and is it frequent that this occurs.

Thank you for your consideration.

Pat


Asked on 4/28/02, 10:06 pm

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: wife's responsibility for co-signing of loan by spouse

You have no personal liabilty for your spouse co-signing or guaranteeing the loan unless you also signed. They can file a claim in your spouse's estate but jointly owned assets with rights of survivorship would not be included in the estate. Whther or not the creditor pursues an estate claim is fact sensitive and will depend on collectabilty and other factors which exist at the time they pursue the claim

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Answered on 4/29/02, 2:50 pm


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