Legal Question in Credit and Debt Law in Massachusetts
Loan afreement
What is the legal ground for the co-borrower to demand restitution payment from the borrower in case of failure of repayment of student bank loan by the borrower if the co-borrower has made all necessary loan payment to the bank? Under the virtue of the bank loan agreement borrower and co-borrower are liable for the repayment of the bank loan individually and collectively. The bank loan agreement fails to stipulate any further regulations between borrower and co-borrower. There is no separate agreement on such legal matter between borrower and co-borrower.
2 Answers from Attorneys
Re: Loan afreement
The contract with the lender does not control the obligations between the co-borrowers and they reatin thier respective rights to lay claim against one another for the amounts. In short, the student whose loans were secured by the co-borrower still has an obligation to repay that co-borrower unless s/he can show that the money was given as a gift. Generally, this case is a Slam Dunk.
Re: Loan afreement
In the absence of a separate and distinct agreement between the borrower and co-borrower, the co-borrower (who actually repaid the loan) may have a claim of unjust enrichment against the person who actually received the benefit of the services which the monies provided ( in this case the borrower). Please feel free to contact my office for a free consult based on the specific facts of your situation.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
