Can I be held liable for a debt if I co-signed a loan?

Yes, you can be held liable for a debt if you co-signed a loan. The law in Oregon states that when two or more people sign an agreement for a loan, they are all legally responsible for the debt, even if one of the borrowers does not receive any of the borrowed money. This means that if the primary borrower cannot pay back the loan, the co-signer can be held liable for the unpaid debt. It is important to remember that if you sign as a co-signer, you are agreeing to be just as responsible for the debt as the primary borrower. This means that you are taking on the risk of added liability if the primary borrower fails to make payments. Additionally, co-signing a loan may impact your credit score. This occurs because when you co-sign a loan, the debt is recorded on your credit history in addition to the primary borrower’s. Thus, if the primary borrower fails to make payments, it will reflect on your credit history. If you choose to co-sign a loan, it is important to understand your rights so that you can protect yourself from potential legal liability or credit damage. It is important to remember that it is the responsibility of the co-signer to make payments if the primary borrower fails to do so, and you can be held liable for the debt.

Related FAQs

What is a hardship plan?
How do I stop a debt collector from calling me?
Can a debt collector report a debt to the credit bureaus?
What is the difference between debt settlement and debt consolidation?
What is the statute of limitations on credit card debt?
Can I negotiate with a creditor?
What is a judgment lien?
How is a debt erased after seven years?
What is a credit report freeze?
Can I be sued for a debt after the statute of limitations has expired?

Can I be held liable for a debt if I co-signed a loan?

Related FAQs

Related Blog Posts