I filed for BK over 2 years ago and would like to rebuild my credit. There was one debt I did not include in the BK because the debt wasn't mine. It was my roommate's. I co-signed a loan at a furniture store because he needed furniture for his children. Now, I know that cosigning is a big mistake, but at the time I didnt. He was a good friend in need. He was making $135 monthly payments as agreed. When I asked him to move out, he stopped making payments. I received a bill from the Store. The balance due was about $650. The original amount according to them was $3200. I would have never co-signed a $3200 loan. I thought it was something like $1250, the most. He probably went back to the store by himself and added furniture before the delivery date, I'm sure. I argued with the CA over the phone, wrote a letter asking for a copy of the contract with my signature last year, but never got a response. I never paid it, I tried searching for this pos but I never found him. I would like to know if I should send a Validation letter, or what. I notified the CRA last year and it came back as "confirmed" or whatever. Any suggestions? thanks.
Actually, if you co-signed for the loan, the debt is yours. You are the co-signer, so that puts you on the hook for your friend's debt. That is why you never co-sign for anybody. Ever. That being said, I would immediately send a validation letter to the CA. Make them prove you're on the hook for this. You can't go back in time and try to include this in your BK. If they come back with validation (i.e. your signature on the loan application), then you could either: A. sue your friend for the money he owes you on this. B. Settle for deletion from your CR, and chalk it off as an expensive lesson learned. If anybody else has different, or better advice, I'm sure they'll tell you. lbrown59?
Hmmm...it still seems like he may need to go to court to argue this. In the meantime, I would still send the validation letter. Maybe they won't be able to produce a contract.
thanks for your answers, I understand that I am responsible for the loan. I just wanted to get some opinions. I will send a validation letter first. If they reply, I will try to settle. Does 50% sound like a reasonable offer? thanks again.
Keep in mind the link I provided deals with Illinois law, but much of it is predicated on U.C.C. so can be applied anywhere. Gib
1*There was one debt I did not include in the BK because the debt wasn't mine. I-signed a loan at a furniture store because he needed furniture for his children. 2*Now, I know that cosigning is a big mistake, 3*He was a good friend in need. 4*I would like to know if I should send a Validation letter, or what. I notified the CRA last year and it came back as "confirmed" or whatever. pesao ================ 1* If you put your name on the............................. the bill is yours. 2*Sure was but you made an even bigger one when you did this. I did not include this debt in the BK. You missed the train going both directions. The first time when it left the station by cosigning and again when it made the return trip by failing to list the debt in the BK. 3*I hope you don't have any enemies 4*Follow bucks advice here. I would immediately send a validation letter to the CA. Make them prove you're on the hook for this. You can't go back in time and try to include this in your BK. If they come back with validation (i.e. your signature on the loan application), then you could either: A. sue your friend for the money he owes you on this. B. Settle for deletion from your CR, and chalk it off as an expensive lesson learned. BUCK
"You missed the train going both directions." - The story of my life... Now I feel more confortable taking the next step. I didn't want to end up in the "what not to do when cleaning your own credit..." forum. thanks.
If you're going to settle, I would start with a figure of 30 percent. They most likely won't take it, but if you wind up around the 50-60 percent mark during your negotiations, you're doing pretty good.
