If I signed a car loan for a friend and he has stopped paying it, what can I do?

UPDATED: Jul 11, 2011

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If I signed a car loan for a friend and he has stopped paying it, what can I do?

He paid for 3 years but has stopped 2 months ago. I tried contacting him for the payment or to return the car but he refused to reply. Can I have him arrested for theft and take him to court to pay the rest of the payment?

Asked on July 11, 2011 under Bankruptcy Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If your friend has stopped payment on the car and it has not been paid off, most likely it has been sent or soon will be sent for repossession by the person who holds the lien putting you in a difficult position since you signed the loan for the friend on it. You are obligated on the loan.

You have the following options: 1. pay on the loan even though you do not have the car in your possession sp your credit is not damaged, 2. do nothing, let the car get reposssessed, have your credit damaged and expect a lawsuit against you from the lien holder, 3. get your friend to come current on the loan for th car, 4. sue your friend for monies expended to cure the default on the loan you paid.

This is a civil matter. You cannot have your friend, or soon to be former friend arrested for theft. There was no theft. He or she just failed to make payments.

Good luck.


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