Legal Question in Credit and Debt Law in New York

My mother was tricked by my brother into co-signing for a student loan for him. This was almost 10 years ago. He promised her that she would not be responsible for payment and assured her that he would make the payments on time, every month until the entire loan was paid. My brother has made occasional payments on the loan since that time. However, he has not been consistent at all. He has not even paid a full $2000 on the loan since it was taken out. Over the years, my mother has received numerous harassing calls from Sallie Mae demanding payment for the past, past, past, due amounts that were due. My brother made none. My mother began making payments on the loan out of fear and guilt imposed by this debt collector. Since the time the loan was taken out, my mother has retired and is now on a fixed income, social security and pension. She is now unable to handle the additional debt. Mind you, my brother works EVERYDAY.

The debt was turned over to a collection agency and they called her and made her think that the debt was about to go into litigation. This invoked fear in her once again, and she winded up taking ALL of her credit cards and making a huge payment on the loan. They also promised her that if she did this, she would no longer be responsible for the debt, and would be removed as co-signer for the loan. they also promised her that this would be removed from her credit reports.

My mother is unable to make these monthly credit card payments on a fixed income.

We are planning to reverse all of the credit card payments, and ask the collectors to renegotiate.

How can this be taken care of so that my mother doesn't have to come out of her pocket for this debt?

Can she take my brother to small claims court for breaking a verbal contract?

Isn't it illegal for her to be required to pay this debt from her retirement income?

What can be done to make certain that my brother begins to pay this $22K debt?

This is causing her a great amount of stress.


Asked on 9/03/10, 9:22 pm

1 Answer from Attorneys
Jack Hall Hall Bankruptcy Services

I might be able to help your mother get out from under this debt. However, this would be much easier to explain on the telephone. You can call me at the number listed on my bio at this web site or you can call me anytime, including this weekend, if you wish, at this number nine one five two six one three eight nine three

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Answered on 9/11/10, 9:31 am


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