Legal Question in Business Law in Missouri

Guaranter ensured they were no longer listed after loan refinanced

My mother had helped me out when I first started in business.Both her and I had signed as guaranter.Six years later when company held many assets and was doing well I decided to refi everything in order to get mothers guaranter removed as she had beginning onset of alzheimers and no longer understood what was going on.The banker knew my mother and agreed it would be best to do this now that the business was on its feet and had assets (banker now gone).I signed the refi note alone.Several years later our industry took a nose dive and I lost the company while still owing $30,000. I was served papers and ultimately had a judgement filed against me. Mom is needing a much smaller home now and when we went to the bank for some financeing on her behalf we learned that she also has a judgement against her for the business loan. She never signed anything on the business refinance,she was never served papers to show up in court this I know after asking the sherrif dept what adress she was served at and was given my address not hers,mom has never resided with me at this address. My mother crys all the time saying the bank lawyer says for her to keep her home ultimately she needs to write a $30,000 check, she has no lein on her home Help!


Asked on 5/09/06, 4:51 pm

2 Answers from Attorneys
Jeffrey Carey Carey Law Firm, LLC

Re: Guaranter ensured they were no longer listed after loan refinanced

There are numerous issues. 1) For the judgment to be valid personal service would have been required against your mother and 2) if default judgment was taken it may be set aside and her name cleared under certain circumstances. Time limitations for setting aside a default judgment are extrmemly limited. I would suggest that your mother contact an attorney immediately.

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Answered on 5/09/06, 5:05 pm
Anthony DeWitt Bartimus, Frickleton Robertson & Gorny, PC

Re: Guaranter ensured they were no longer listed after loan refinanced

What Mr. Carey said is absolutely true. You need to place your mother in the hands of a competent attorney immediately. If your mother was incompetent at the time the judgment was taken, there is an argument that the time limits for a default judgment might not apply. There are special requirements when suing someone incompetent, and there are numerous defenses. Unfortunately, this is not something you can handle yourself. You need to see a lawyer right away, and if your mother is not competent, you probably need to talk about getting a guardianship or conservatorship established.

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Answered on 5/10/06, 10:17 am


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