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    JoMaier's Avatar
    JoMaier Posts: 1, Reputation: 1
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    #1

    Mar 9, 2009, 02:39 PM
    What is the Statute to sue someone who defaulted on his co-signer?
    I would like to sue someone who defaulted on a loan that I was a co-signer for. Many years have passed, as I didn't know I could sue for this.

    What would the statue be? And is the limit in Alberta $7500?
    this8384's Avatar
    this8384 Posts: 4,564, Reputation: 485
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    #2

    Mar 10, 2009, 09:10 AM

    What are you suing for, exactly? Did you pay the remainder of the loan? Who has the property that you co-signed for?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Mar 10, 2009, 09:13 AM

    I believe the SOL on breach of contract is 4 years.
    this8384's Avatar
    this8384 Posts: 4,564, Reputation: 485
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    #4

    Mar 10, 2009, 09:26 AM
    Quote Originally Posted by ScottGem View Post
    I believe the SOL on breach of contract is 4 years.
    Just curious: does breach of contract actually apply here? The OP was the co-signer, not the lender. By being the co-signer, they agreed to be held liable to pay the debt if the original debtor defaulted... no?
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    this8384 Posts: 4,564, Reputation: 485
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    #5

    Mar 10, 2009, 09:28 AM

    SOL for Alberta is 2 years, unless a judgment has been entered:
    Statute Of Limitations On Debts In Canada
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Mar 10, 2009, 09:34 AM
    Quote Originally Posted by this8384 View Post
    Just curious: does breach of contract actually apply here? The OP was the co-signer, not the lender. By being the co-signer, they agreed to be held liable to pay the debt if the original debtor defaulted...no?
    When one is a co-signer, there is an implied contract between the primary borrower and the co-signer that primary borrower is responsible for making sure the debt is paid. The co-signer is responsible for making sure the debt is paid to the lender. If the co-signer does pay, they can sue the primary borrower under the implied contract to recover their losses. Now whether that implied contract falls under debt or some other form of contract, I'm not sure.
    this8384's Avatar
    this8384 Posts: 4,564, Reputation: 485
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    #7

    Mar 10, 2009, 09:37 AM

    Ahh, I see. I was just wondering about the "breach of contract" part. I guess that's why I was asking who paid what and who has the property now.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #8

    Mar 10, 2009, 09:40 AM
    Quote Originally Posted by this8384 View Post
    Ahh, I see. I was just wondering about the "breach of contract" part. I guess that's why I was asking who paid what and who has the property now.
    Those are VERY good questions and would clearly have a bearing on the co-signer's losses.
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