Legal Question in Credit and Debt Law in Texas
Borrowing money for a friend.
My husband and I had a close friend who recently needed some help(lost her job). Until this point, she had good credit. She asked us to help. Her bank assured her that if she caught everything up and paid on time for six months, she could borrow the money to consolidate her debt. To do that, we would have to borrow $10,000. Our answer to her was that we didn't think that we had enough ''available'' credit to borrow that much. She found a bank to loan us that much. When we found this out, we felt ''stuck''. She continued the process and got the money without any signatures from us. The agreement was that she would make the monthly payments for six months and then secure a loan in her name for the balance of the account. He never signed anything. She has made a couple payments that we can ''prove''. She says she has made the others but they have been ''lost'' either in the mail or processing error with the company. To make a long story short, our credit is on the line. We are coming up on six months. We now know what a mistake we made. But, do we have any options? What if she doesn't pay? What if she doesn't uphold the agreement we made? Is there anything we can do to protect our credit from this?
1 Answer from Attorneys
Re: Borrowing money for a friend.
If you co-signed for her loan, or signed some other documents for her pledging your credit, you may be on the hook if she defaults. If you didn't sign anything, then you can't be held liable for her debt.
If you have to pay off the balance of her loan, you can sue her, for whatever that may be worth.
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