I co-signed a loan for a carthat was later totaled in an accident,if the owner will not pay for it what is my liability?

Get Legal Help Today

 Secured with SHA-256 Encryption

I co-signed a loan for a carthat was later totaled in an accident,if the owner will not pay for it what is my liability?

I cannot afford to pay for the car either. What can the company do to me? They don’t seem to be going after the person that brought the car. What should I do?

Asked on October 28, 2010 under Bankruptcy Law, Florida

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

As a co-signer, you would be liable for the amount of the loan plus interest.  You might also be liable for the deficiency which is the difference between what the car would have been worth had it been sold instead of being totaled and the amount owed on the loan.  You could sue the person who took out the loan to recover the amount of a judgment against you obtained by the creditor.

Depending on the amount of the loan, if eligible, you might want to consider filing bankruptcy.  it would be premature to file bankruptcy until the creditor obtains a judgment against you.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption