Legal Question in Business Law in Nebraska

Re: Co-signer in trouble.

Probably not in both cases. First, fraud is very difficult to prove and intent to defraud is an essential element of that proof. How do you prove someone meant to mislead you? Co-signers are not usually casual acquaintances or strangers; so the threshold is much lower. It is presumed you are thoroughly familiar with the character of the person you co-signed for and personally value their ability and willingness to pay higher than the creditor did when they required a co-signer. Most financial contracts don't make provisions for a co-signer to back out, so there isn't likely to be a provision in the contract allowing you to walk away. In that case, the lender can ask for whatever they want. If it doesn't sound like a good deal, don't take it.