QUESTION
What can I do if I cosigned on a loan with now my ex fiancé and when we broke up, he was to continue paying the loan but he did not?
Asked on Jul 18th, 2014 on Bankruptcy - California
More details to this question:
Thank you for your help, in advance. I received a notice a few days ago saying the loan had not been paid and when I called the company told me it had not been paid for over 13 months now. This is the first notice I receive. My car was placed as collateral on the loan and I don't want to lose my car. I filed bankruptcy last year as well and that collection company told me they could see that. But they said the only option I have is to pay the loan or surrender the car. I had already notified the actual loan company 2-3 years ago on several occasions and they said they would contact him to refinance to remove my car. Thank you!
11 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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You're in trouble. You'll have to pay it or lose your car. And, if less is obtained for your car than the balance on the note, you'll still be liable for the deficiency.
Answered on Aug 04th, 2014 at 9:00 AM
Your personal liability to the lender may have been eliminated in your bankruptcy. However, the lien on your vehicle would have survived the bankruptcy, unless a motion to avoid lien was granted. You remedy may be to sue your former finance for payment.
Answered on Jul 23rd, 2014 at 3:00 PM
This is a risk you take when you co-sign a loan, which is why lawyers always say NEVER CO-SIGN!
Answered on Jul 22nd, 2014 at 1:08 PM
As co-signer you are responsible for the loan. They can take the security, which is the car. If you listed the debt in your BK, any personal responsibility for any deficit in the loan above the value of the car may be discharged.
Answered on Jul 22nd, 2014 at 1:07 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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Delinquent payments on the account justifies creditor repossession. You should consult with an attorney regarding your right under Chapter 13.
Answered on Jul 22nd, 2014 at 1:07 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Since they have a lien on the car, they have the right to repossess it if the loan isn't paid. Your choices are to pay the loan or lose the car.
Answered on Jul 22nd, 2014 at 1:05 PM
This is one of the many perils of co-signing loans. You not only signed your name but pledged your car as collateral for your ex-fiance's loan. Your bankruptcy last year did not eradicate the lien on your car, so the collection company does have the right to repossess it. Your only option is to negotiate a payment plan with them, and your only legal recourse against your ex is to sue him for the loss you incur on his behalf.
Answered on Jul 22nd, 2014 at 12:59 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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The bank is a secured creditor. You will have to make payments or surrender the car.
Answered on Jul 22nd, 2014 at 11:55 AM
2 Awards
By co-signing you are equally liable.
Answered on Jul 22nd, 2014 at 11:55 AM
You don't have a lot of options. You do have to pay the loan or the lender will repossess the car. You could negotiate a lower payment since the lender appears not to be in a great hurry.
Answered on Jul 22nd, 2014 at 11:54 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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When you filed your bankruptcy, you should have listed the loan. If you pledged your car for the loan, they do have a right to repossess the collateral if payments are not being made. 13 months is a long time to go without notifying the co-signer that payments were not being made. Read the loan documentation you should have received at the time the loan was signed. Then seek competent legal counsel to help you resolve this matter with the loan company.
Answered on Jul 22nd, 2014 at 11:54 AM