i cosigned a vehicle loan that defaulted now i am being sued

UPDATED: Jul 6, 2009

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i cosigned a vehicle loan that defaulted now i am being sued

i am a single unemployed father of a disabled 10 year old. what should i do. the party i cosigned for doesnt care what happens

Asked on July 6, 2009 under Bankruptcy Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

If you cosigned, you are legally obligated on the loan. You should try contacting the lender and explaining the situation--lenders are not unreasonable, and they may let you pay over an extended period of time, pay a lesser amount, or at least reduce the interest that's accruing.

You might also, depending on your overall balance of debt to assets and income (including any disability or SSI payments for your son or unemployment compensation), consider declaring bankruptcy to wipe out any debts. If you have little or no income (and if the income you have is protected in a bankruptcy--in many states, disability payments and UI are) and few assets but many or large debts, bankruptcy can be a very viable alternative.

You can also sue the other party on the loan, though if (s)he doesn't have assets, you may not be able to collect from them; or the cost of the suit may outweigh any possible recovery.

You should try to get a consultation with a local bankruptcy attorney. You can use this site for referrals, or call your state Bar  Assocation. Many attorneys will provide a free initial consultation. You might also be eligible for free legal assistance--when you talk to your Bar Assocation, explain the situation and ask for referrals to any services or programs that provide free legal help for people who can't afford lawyers.

Also, if there are charitible or umbrella organizations for the condition(s) your son has, they may be able to refer you to attorneys who would help you for a reduced rate or free.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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