Can a Cosigner Sue the Primary Borrower You Cosigned For?

A cosigner who pays or is forced to pay can generally sue the primary borrower for reimbursement or indemnity. If the loan creates joint and several liability you can seek the full share from the borrower. Courts also recognize subrogation, which means you step into the lender's shoes to collect what you paid. Contract language can expand, limit, or waive these rights, so read the note and guaranty carefully.

Jurisdiction matters, statutes of limitations vary, and small-claims court may fit smaller debts while civil court handles larger claims and complex remedies. Gather payment records, the loan agreement, and communications before filing. For a clear primer on cosigner obligations and remedies see CFPB on cosigner responsibilities.

Weigh likely recovery, court costs, and time against negotiation or settlement first, since suing can fix credit damage but may not be worth the expense.

You can sue the primary borrower on several clear legal theories when their default harms you as a cosigner, each tied to different proof and outcomes.

• Indemnity (contract/guaranty clause): enforce written promise that borrower repay, show contract and breach.
• Equitable subrogation: after you pay lender, step into lender's shoes to collect from borrower.
• Contribution: split shared debt among obligors, prove you paid more than your fair share.
• Breach of contract: enforce borrower's separate repayment promise, produce agreement and missed payments.
• Unjust enrichment: show borrower benefited at your expense without legal justification.
• Promissory note enforcement: if borrower signed the note, sue on the note's terms, present the original note.
• Suretyship conversion: borrower's defenses that triggered your loss can convert to borrower liability, cite causation.

States vary on paperwork, statute of limitations, available remedies, and required evidence; common proofs include the loan contract, payment records, cancellation notices, and correspondence. For a neutral primer on guarantees and surety law, see guarantees and suretyship basics.

You can lose the right to sue if your state's statute of limitations expires, so act before that clock runs out.

The limitations period usually starts at the earliest of these events:

• borrower default that first triggered your liability;
• the date you paid and seek reimbursement;
• contract acceleration by the lender.

Periods differ for written versus oral contracts, often longer for written ones. Some states reset the clock if you make a partial payment, effectively reviving the claim. Time may toll while the borrower is out of state or otherwise unavailable.

Once you have a judgment, a different collection clock applies, separate from the pre-judgment limitation. You must cite your state's statute and filing fees when you sue, so check the rules. Visit the national state courts portal to locate your jurisdiction's civil court procedures, statutory deadlines, and court cost details.

You win a cosigner suit by proving the debt, your payments, the borrower's default, and your demand for repayment with clear, authenticated records.

• Signed promissory note or guaranty, showing terms and signatures.
• Lender account statements and payment history, showing balance and charge-offs.
• Your payment proofs (bank transfers, cancelled checks, receipts) with dates.
• Demand letter plus delivery confirmation (certified mail or courier).
• Written communications, texts, emails where borrower admits debt or refuses payment.
• Credit reports or tradeline screenshots showing the loan and derogatory status.
• Any settlement offers, forensics of payment allocations, and a calculation workbook showing damages.
• Chain-of-title documents if the loan was sold or assigned.

Authenticate quickly: keep originals, date-stamp copies, and prepare a sworn affidavit attesting to how each record was created and kept. Use business-records affidavits for lender files, attest to custody and regular practice, and prepare a simple exhibit list that maps each fact to a page and date. Scrub unrelated PII before filing exhibits to protect privacy.

• Obtain online account downloads and PDF statements from lender portals.
• Send a Qualified Written Request or records request, use subpoenas if needed.
• Order credit reports and archive them with screenshots.
• Use certified mail and retain tracking, and consult CFPB sample demand letters for templates.

Start by confirming you have a valid claim and are within the time limit to sue.

1. Audit the contract and statute of limitations, note borrower obligations, payment history, and exact deadline for filing.
2. Quantify damages: list unpaid principal, interest, and fees; example: $5,000 principal + $500 interest + $50 fees = $5,550. Include late-date math and source docs.
3. Send a compliant demand letter, state the amount, cite the contract breach, give a clear deadline (usually 10–30 days), and keep proof of delivery.
4. Choose venue and service: decide small claims or civil court by amount, verify filing fees, and plan personal or certified service per local rules.
5. Build a proof file: organized exhibits (note, contract, payments, correspondence), a one-page timeline, and witness list with contact details.

Consider mediation or settlement review before filing, and see your state's small claims court resources.

Expect both obvious and hidden costs when you sue the primary borrower, and they can add up quickly. Court filing and service fees, attorneys, time off work, enforcement actions, and relationship damage are the main drains.

Filing in most U.S. courts costs modestly, often $50 to $400, but local fees vary, check the federal court fee schedule for civil and appellate filings or your county clerk for exact rates. Attorneys charge hourly or contingency; limited-scope help lowers hourly bills. Mediation adds fees but may cut total costs. If you win, garnishment, levies, or collection still cost time and money. Fee-shifting clauses in the loan or judgment sometimes make the loser pay, but they are not guaranteed.

Practical cost breakdown:

• Filing and docket fees, typically $50–$400.
• Service and process server fees, $30–$150.
• Certified mail and document costs, $10–$75.
• Attorney fees, $100–$500+/hour or contingency 20–40%.
• Lost wages for court appearances, variable.
• Mediation or arbitration fees, $100–$1,000+.
• Judgment enforcement (garnishment, levies), court and attorney costs.
• Credit and relationship fallout, hard to quantify but real.

Most cases against a borrower finish in months, but complex civil suits can take a year or more.

• Week 0: demand letter sent, file if no response.
• Week 1–4: serve the borrower, ask for default if not answered.
• Month 1–2: small claims resolved, or limited civil matters move through initial hearings.
• Month 3–6: discovery, motions, and settlement talks in limited civil cases.
• Month 6–18+: general civil cases reach trial or long delays for complex evidence or heavy dockets.
• Post-judgment (weeks–months): collection, garnishment, or lien recording; bankruptcy by the borrower pauses enforcement.

Timing varies by forum: small claims often close in weeks to months, limited civil typically moves over months, and general civil commonly runs 6–18+ months. Common bottlenecks are service of process, discovery disputes, continuances, and crowded court calendars. Faster paths include default judgments, written stipulations, mediation, or agreed judgment installments. For local benchmarks and federal medians, see U.S. courts civil time standards.

You can recover what you paid and related legal costs if you sue the primary borrower and win.

Recoverables typically include amounts you paid on the debt, both principal and interest, plus contractual interest the borrower still owed. You can seek late fees and collection charges you covered, court costs, and attorney's fees when the loan contract or statute allows. You may also claim prejudgment interest for delay and post-judgment interest after entry of judgment.

You must try to mitigate damages, courts may limit or cap some items, and punitive damages are uncommon in pure contract cases. If you obtain a judgment, you can record a judgment lien, levy bank accounts, or seek wage garnishment subject to state rules. Enforcement costs and delays are possible, and bankruptcy by the borrower can change recovery prospects.

• Principal and interest you paid.
• Contractual interest remaining.
• Late, collection, and administrative fees you covered.
• Court filing fees and taxable costs.
• Attorney's fees if the loan or law permits.
• Prejudgment and post-judgment interest.
• Note mitigation duty and possible statutory caps.
• Remedies: judgment lien, bank levy, wage garnishment.

The borrower will raise predictable legal defenses, and you must be ready with focused counterproof.

• Statute of limitations expired: show dated payments, loan statements, or tolled dates to revive the claim.
• Lack of privity or notice: prove signed contract, signature pages, and delivery records.
• Payment or offset: produce payment ledger, bank records, or settlement agreements that disprove credit for the borrower.
• Release or novation: obtain the original release or novation document, or show absence of creditor consent.
• Fraud or duress claim by borrower: require contemporaneous communications, witnesses, or transaction histories to disprove coercion.
• Material modification by lender (surety discharge): show cosigner's lack of consent plus loan modification paperwork and timing.
• Lack of consideration: present the loan agreement, disbursement records, and evidence funds were advanced.
• Laches or unreasonable delay: document prompt collection efforts and written demands to defeat claims of prejudice.
• Bankruptcy discharge by borrower: check the bankruptcy case number, discharge order, and whether the debt was excepted; attach court records.

For an overview of basic consumer rights and sample legal forms see the ABA consumer protection guide.

If the primary borrower files bankruptcy you still have options, but the case changes how and when you can act. The filing triggers an automatic stay that stops most collection steps and freezes lawsuits, garnishments, and repo efforts against the debtor. In Chapter 7, the debt may be discharged and your direct suit against the debtor for reimbursement is usually paused, but the creditor can still pursue you as cosigner unless the creditor also releases you.

Chapter 13 can offer extra protection because of the co-debtor stay under 11 U.S.C. §1301, which can temporarily shield you from collection while the plan runs. You should file a proof of claim if you expect to seek repayment from the estate or want notice, and watch the bankruptcy court's bar date for claims. A discharge removes the debtor's legal duty but does not always defeat your reimbursement claim, especially if you sue for fraud or other nondischargeable conduct, which requires an adversary proceeding. Monitor all notices, meet claim deadlines, and consult a bankruptcy attorney quickly. For plain-language basics see U.S. Courts Bankruptcy Basics overview.

Start with pragmatic alternatives that protect your cash and credit: negotiate a written repayment or settlement, use mediation, pursue loan modification or refinance, arrange novation to remove you, agree to surrender collateral, or obtain a stipulated judgment held in escrow.

Negotiate first, because it costs the least and preserves credit. Ask the borrower for a clear payment plan or lump-sum settlement, put it in writing, and sign it. If direct talks stall, propose a mediated agreement with a neutral facilitator, which creates enforceable expectations without a lawsuit.

If negotiation fails, explore formal loan fixes. Request a loan modification, help the borrower refinance, or seek a novation that replaces you as cosigner. For secured loans, consider an agreed surrender of collateral to discharge debt. A stipulated judgment can lock terms while funds sit in escrow, protecting you from surprise collections.

Protect your credit actively: dispute report errors, send goodwill or hardship letters, enroll in lender hardship programs, and monitor accounts. For how to dispute credit report mistakes see the CFPB's credit dispute process overview. If you want, get a neutral credit report review to spot problems and next steps.

Yes, as a cosigner you can sue the primary borrower to recover payments or enforce rights, but success depends on contract terms, state law, and evidence.

Do I have to pay first to sue?

You do not always need to pay more to sue, but courts expect you to show payments or losses already incurred. Keep proof of payments, statements, and demand letters.

Can I use small claims?

Yes if your damages fit your state's small-claims cap, which varies by state and can limit recovery. Small claims are faster and cheaper, but may restrict remedies and appeals; see representing yourself in court for pro se guidance.

Can I garnish wages after judgment?

If you win and collect a money judgment, you can usually garnish wages or levy bank accounts, subject to state exemptions and federal limits. Post-judgment collection requires additional filings and often a court order.

What if the borrower files bankruptcy?

Bankruptcy can block or reduce your recovery, especially if the debt is discharged. File a proof of claim and consult counsel quickly to protect priority or nondischargeable claims.

Do I need the borrower's current address?

Yes, you generally need a current address to serve the complaint and enforce judgments. If the address is unknown, courts allow alternative service methods after good-faith efforts to locate them.