QUESTION
What are my rights as a cosigner on deficiency loan?
Asked on Apr 19th, 2012 on Bankruptcy - Louisiana
More details to this question:
Hello, I am a cosigner of a motorcycle loan which was reposessed and is now in collections for the deficiency amount. My question is can I be sued for the deficiency before the primary borrower if he is employed and makes more money than I do? Thanks so much.
1 ANSWER
As a cosigner, you are liable for any deficiency. The rules vary from state to state on whether the primary borrower must be pursued first. But, at a minimum, if you are sued for the deficiency on the loan, you may bring a claim against the primary borrower for indemnity. This should be done as soon as suit is filed in order to most appropriately protect your rights.
Answered on Apr 23rd, 2012 at 12:41 PM