What are a co-signer’s responsibilities under a default of a car loan?

UPDATED: Mar 30, 2012

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What are a co-signer’s responsibilities under a default of a car loan?

I’ve been divorced for over a year and my ex-wife and I are being sued for her failure to pay a car loan? I live out of state. What are my rights?

Asked on March 30, 2012 under Bankruptcy Law, Ohio


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A co-signor is fully as responsible or liable to the lender as the main signor; the lender (or dealership/manufacturer financing arm) may seek to recover some or all of the money due under the financing arrangement from you. If you do not pay it, they can sue you; a default will also be reported against your credit.

You in turn may be able to sue your ex-wife to recover the payments which she should have been making under the terms of the loan and also under any agreements between the two of you.

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