QUESTION: Aldrin, I signed as a co-maker in a loan contracted by a close friend. She used it to finance her business venture. Sadly, she died. The bank is now coming after me. Aldrin, I didn’t get a single centavo from that loan. I only signed out of the kindness of my heart. At the time, she was desperate to get her business running and was begging me to sign. Am I liable?
ANSWER:
Unfortunately, yes.
As a co-maker, you and your friend both signed the Promissory Note.
The Promissory Note represents the debt.
By signing as a co-maker, you made yourself a debtor, liable to the bank upon demand.
You cannot really blame the bank for going after you because your signature is found in the loan documents.
Now, I understand that paying the loan may be unfair to you
After all, you didn’t get a single centavo from that loan
So, once the bank comes after you through a collection of sum of money case, here’s my advice:
Institute a cross-claim against the estate of your friend.
And through that cross-claim, present convincing evidence that will prove that you didn’t benefit from the loan… that you were merely an accommodation party… that in fact you only signed to help your friend.
LESSON: Be very careful when signing as a co-maker, even if that someone is close to you
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