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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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My partner and I obtained a loan for a business that is now

Customer Question

My partner and I obtained a loan for a business that is now closed. The balance of the business is 109,000. Our monthly note was 2,000 a month which we have been paying each half. Recently my partners husband quit his job, and she stopped paying her share of the loan. She then refinanced her second business and took all equity out of that so that it would not show any equity. She also stopped paying herself and pays all household bills out of her business so that it looks like she has nothing. I have continued to pay my share (1100.00) which is what I can afford. Bank then contacted me stating they are filling judgement to collect all and will do whatever it takes no matter where it comes from. I asked them to please let me continue to make payments, that I am doing what I can. Yesturday the bank called and said that they would be suing my partner and that they would agree to let me continue with payments but I would need to sign a consent of JUdgement. I am not sure what this is? If I sign this am I assuming all debt? Will it go against my credit? Are they suing me also? I was hoping that they would just work out an agreement with me to make payments and sue my partner. Help
Submitted: 4 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 4 years ago.

Thank you for your question. Please permit me to assist you with your concerns.

A "consent of judgment" is a note or a document where you agree (for specific conditions) to agree to your liability and to not contest their judgment against you and your ex partner/ This is something you would need to read very carefully since legally you and your partner are both 'jointly and separately' liable for the debt. If the language in the states that you are not going to be personally responsible for half of the debt or that the other party agrees to not pursue you if you continue making payments, then it makes sense to sign. But if they are not giving you any assurances then signing such documentation may be risky. It is an assumption of debt and it does go on your credit unless they agree to waive the order. They CAN sue you, but generally a consent of judgment is a means of avoiding the court battle against you.

Good luck.