suing primary borrower to avoid bankruptcy

June 12th, 2009 by Questions

I cosigned a loan which for which the primary is now in default. I have been demanded to pay the debt. With other debts, this would put me into bankruptcy or at least a consumer proposal. Can I sue the primary borrower for the outstanding, and give it to the lender? or do I have to make payments on the debt before I can recover anything from the delinquent person?

Posted from: Alberta


One Response to “suing primary borrower to avoid bankruptcy”

, A licensed trustee said:

Don’t you think if you sue the primary that they will simply file bankruptcy themselves? You need to speak to a lawyer (not a trustee). Whenever you co-sign for a debt you assume the risk that the primary won’t be able to pay. Co-signing is always a bad idea unless you are prepared to repay the debt yourself…

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