What to do if I co-signed for a $2500 loan, they quit paying on it and now it’s up to $4000?

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What to do if I co-signed for a $2500 loan, they quit paying on it and now it’s up to $4000?

The collateral on the loan is a truck, the loan company will not repossess the truck they say it isn’t worth enough. They called me yesterday and said that they are going to garnish my wages. I cannot afford to pay the payment or have my wages garnished. The co-signer no longer has a job so I am solely responsible. I would like to know if I can legally do something to get my name off the loan or lower my payment as to where it’s affordable.

Asked on November 9, 2012 under Bankruptcy Law, Ohio

Answers:

eric redman / Redman Ludwig, P.C.

Answered 8 years ago | Contributor

you are legally responsible for the whole amount.  the creditor can sue you, get a judgment, and garn 25% of your wages til paid in full.  the atty might allow smaller payments- you have to negotiate that.

if you have enough debts you might consider a bankruptcy to get a fresh start.


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