Legal Question in Credit and Debt Law in Minnesota

Cosigner for loan

I cosigned a student loan for a friend. She started being very late on payments and this was showing up on my credit reports. In order to keep my good credit I made the following VERBAL agreement with her: I would make the payments with my bill pay so that the payments would always be on time. SHE would then pay ME for the monthly payments. You know the rest. She stopped paying me. She now owes me about $1600. My question is, since WE had an agreement between the two of us which was separate from our responsibility to the lender, can I sue HER to get my money back? I know I'm on the hook to the lender, but what about HER responsibility to ME?


Asked on 10/06/08, 3:41 pm

2 Answers from Attorneys
Kent Gravell Cundy & Martin, LLC

Re: Cosigner for loan

I believe you can sue her in conciliation court. Go to www.mncourts.gov and click on court forms, click on conciliation court and file it with the court with the fee ($50-$60) depending on the county you live in. If you win in court, you get the filing fee added in.

The problem is collecting and you might need the help of an attorney to collect if your friend does not pay off the judgment. Collection involves garnishment of bank accounts, wages, etc.

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Answered on 10/06/08, 4:07 pm
Maury Beaulier612.240.8005 Minnesota Lawyers

Re: Cosigner for loan

Even a verbal contract can be enforceable if you can prove its terms. SInce the amount in controversy is less than $7,500, it is a case that can be filed in concilation court which is Minnesota's version of small claims court.

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Answered on 10/06/08, 9:39 pm


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