[simone123]

Hi, My father (68yrs) passed away unexpectedly. His wife died a yr before him (44 yrs old) He had co-signed as a Grantor for his step daughter that bought a new car. Step-daughter let car be repossessed. Car sold at auction, the bank has filed $3200 against dads estate. I understand the bank coming to my dads estate right off the bat. To easy for them. My sister & I have a problem with the bank not taking legal action on this step-daughter for her debt! We talked with this bank to pursue her. She is responsible for the default in their contract. Her signing and agreeing to own a car and the responsibility that leads to her decisions should reflect on her. She is an adult! (20yrs old)
Let me back up 6 months ago before the car loan came about, her & her mom wrote cks on same ck acct. at this same bank & let overdraft charges to add up to 1,000/more. This bank took legal action, dad took out a loan for this money to keep them from legal actions. Step daughter already had a history with this bank and they give her a loan for a new car!
The bank did not require dad (66yrs old, smoker, alcoholic & not in good health) have life ins. But had life on the girl? What's wrong with that picture? My dad was a barber in a small town. His trailer sold for $26,000. His wife (44 yrs old) died before him. He could not pay for her burial; her family said they would pay 1/2 of the expense. They didn’t! Dad refinanced his trailer to bury her. Paid in full.
The Executor (my sister) & I have any recourse to pursue this girl? Before estate closes and after estate closes. Do we have any recourse on the bank? Our atty says its not worth the money? These people robbed my dad blind.. I don't want this girl to walk...
Thanks so much, for your time\Simone

[Fr_Chuck]

I am sorry, the estate can sue against the step daughter, but the bank does not have to go after her first, if he co-signed, it is much easier to go after the people with the money, the estate, plus if they do not go now, once the estate is settleed, it would be too late.

So the estate has to pay, but they can then go after her to get paid back

[simone123]

So the estate has to pay, but they can then go after her to get paid back
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Ok estate pays... Who is they that can go after the pay back? My sister and I or the estate that would have to remain open?
After estate closes can my sister and I continue at a small claims court for the $3200.00?
Do you need an attorney for small claims?

[ScottGem]

Yes, definitely, the executor of the estate can take the girl to small claims court on behalf of the estate to recover the money paid out. Just like any co-signer can sue the priimary borrower. Most likely the estate will win easily. Then comes the fun, tryng to collect. Do you know where she works? Do You know where she banks? You should be able to garnish her salary, if she's working. Of course she can quit and find another job you don't know about.

That's why the attorney said it wasn't worth it, but its up to you.

As for the bank, nope, they have no liability.

[simone123]

yes, definitely, the executor of the estate can take the girl to small claims court on behalf of the estate to recover the money paid out. Just like any co-signer can sue the the priimary borrower. Most likely the estate will win easily. Then comes the fun, tryng to collect. Do you know where she works? do You know where she banks? You should be able to garnish her salary, if she's working. Of course she can quit and find another job you don't know about.

That's why the attorney said it wasn't worth it, but its up to you.

As for the bank, nope, they have no liability.

Will the estate have to remain open for the executor to take to small claims? Can she sue after settling the estate?
My sister is settling the estate in a couple of days. Will she need a attorney for small claims?
This is one of those last minute dead lines.

[Fr_Chuck]

The estate will have to remain open, that does not mean the house can not sell, it does not mean that most of the money can not be given out, but you can not close the estate before all legal action ( both the estate being sued, or them suing someone else) is finished.

You are not allowed an attorney in small claims court, but can have one review the case before filing it. Of course if this person was to receive money from the estate, that may be something needed to be looked at also

[ScottGem]

An estate is a legal entity it can act just like an individual can. But once the estate is closed the legal entity ceases to exist. As Chuck said, you can still distribute the estate, sell off property etc. But you need to finish all legal actions before the estate is closed.