QUESTION
I co-signing a loan, is there any way I can request the car be repossessed?
Asked on Mar 08th, 2013 on Bankruptcy - Oklahoma
More details to this question:
I co-signed a $17,000 car loan for my 52 year old brother. I felt after years of alcohol and drug abuse he finally was on the right track with a good job and mindset. Three months later I get an email from him saying he is quitting his job and moving to California. I value my good credit and know I am responsible for the payments.
4 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
Actually, the creditor has to notify you in writing to take over the payments before you can be liable. If they do not do this you have a defense. If they do, request that they repo the car. They are not obligated to do so but may. If you take over the debt, you are entitled to the bank's rights in the collateral. If your relative will not sign the title over to you, you may need to get a court order.
Answered on Mar 08th, 2013 at 9:09 PM
No, your only remedy would be a lawsuit against him.
Answered on Mar 08th, 2013 at 2:08 PM
Assuming payments are current, there is no authority for the lien holder to repossess the car. You might try persuading your brother to turn the car over to you,perhaps in exchange for one that is already paid for. If you are on the hook financially for the car with the lien, you may as well get the use of it.
Answered on Mar 08th, 2013 at 2:07 PM
Bankruptcy Attorney serving Overland Park, KS
at
Wellman Law LLC
Update Your Profile
You cant just have the car creditor repossess the vehicle if the other owner is not in default and not consenting to the repossession. If you are concerned that he's going to flee with the vehicle or damage it, once he is in default you can inform the creditor of the car's location. This may help minimize the deficiency amount. As you stated, you are responsible for the loan, meaning also any deficiency that may arise as a result of the sale of the vehicle once returned/repossessed. So if the creditor sells it at auction and gets $4,000 less than what is owed, they can sue you and/or the other cosigner for the difference immediately.
Answered on Mar 08th, 2013 at 2:07 PM