Can I be forced to refinance a car loan if my co-signer dies?

Asked on September 4, 2012 under General Practice, Alabama


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

As a general matter, no--when a co-signer dies, other signers are not obligated to re-finance the loan; they are, however, still liable or obligated for the loan, despite the death of the co-signer, and will have to make payments. The above said, if the loan agreement specifically states that the loan must be refinanced in the event of death, that requirement would be legally enforceable.

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