How can I get legally removed from a defaulted auto loan I co-signed for my daughter?
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How can I get legally removed from a defaulted auto loan I co-signed for my daughter?
Daughters car was repossessed and the car was resold. The finance company is attempting to receive payment for about $11,000 – the difference between the amount Honda resold the car for and the loan amount. Honda tried working with my daughter for a repayment schedule for a reduced amount (amount unknown) and she defaulted on these payments as well. There is no love lost between me and my daughter at this point. The only property I own is my newer vehicle which has a loan. I am in early retirement with a part-time job, live in an apartment with my other daughter, and do not have a large pool of money.
Asked on January 3, 2012 under Bankruptcy Law, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
There is generally no way to be legally removed--once you cosign a loan, you are obligated for it. (Or more technically: if the other parties--you daughter and the finance company--both agreed to remove you, you could be removed; the odds of them both agreeing are vanishingly small, since it's in neither of their interests.) If you could somehow show fraud--i.e. the loan or what you were signing was mispresented to you--that might constitute grounds to escape the obligation, but that is very unlikely on something as straightforward as co-signing for your daughter.
If you cannot afford the obligation, you may need to consider bankruptcy as an option.
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