Expert: Morgan Smith - 10/23/2007

Question
I am being sued by my aunt who cosigned for my college loans. I was unable to pay the loans despite working 2 jobs and doing my best to save money. She then paid off the loan about one year ago and now is suing me. What should I expect in court and how can I defend myself?

Answer
Dear justin

Before I respond further to your question, I must make clear that I do not represent you, and cannot give you individual particularized legal advice. No attorney client relationship is created by this email. For legal advice, you should hire your own attorney, and follow their advice. My role with AllExperts is limited to providing general information and suggestions for educational or general knowledge purposes.
Before you take any action, consult with your own attorney.

Further, I apologize for the delay in my response.  Recent illness has prevented my attention to my duties.

You should expect your aunt to present her case and attempt to persuade the judge to issue a judgment against her to repay her for the loan.  You should anticipate that she will furnish the judge with the loan agreements and other documents, proof of her payments, and other evidence.

Based on the limited information you provide, I do not detect any meritorious defense.  Not having money is not a defense.  You may wish to enlist the assistance of an attorney licensed to practice law in your state to determine if your aunt has a valid cause of action against you as a co-signer, and to determine what, if any, meritorious defenses are available.

You may also be well served to consult with a bankruptcy attorney.  Although typically student loans are not dischargeable in bankruptcy, a judgment in favor of your co-signer might be.  Also, bankruptcy attorneys are familiar with legal issues concerning debts, and may be able to offer you some suggestions that are not known to me.

I hope this helps, good luck to you.

Morgan Smith
SMITH & RAVER LLP
Minneapolis, Minnesota
http://smith-and-raver-llp.biz/