Some states, however, only allow garnishment for government debts such as tax liens and child support. Should the lender win its lawsuit, it may garnish the debtor’s bank accounts or wages to recover the debt. If the joint debtor or cosigner is unable to meet the loan obligations, the lender has the legal right to file a lawsuit in order to procure payment on the debt. If the borrower had a co-signer, or joint debtor, on the loan with him, that individual becomes responsible for the full loan balance as soon as the borrower passes away. Specific laws on the legal procedures the deceased’s lender must follow to either collect the loan or seize any collateral he owns vary by state. Continued abuse of our services will cause your IP address to be blocked indefinitely.When a loan borrower dies, the loan balance doesn’t die with him.
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