QUESTION

Can the cosigner come after me?

Asked on Oct 13th, 2014 on General Practice - Colorado
More details to this question:
Ok, I was curious about a cosigner. Yes consigned on my car and was wondering if I trade my vehicle in and use the money I get from it to buy another vehicle and leave all the debt to him. Could he come after me to pay the money? Let's assume he's not on the title.
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1 ANSWER

Appellate Practice Attorney serving New York, NY
If I understand you correctly, a friend of yours co-signed a loan on your car.  You are asking if you trade in your car, can you leave all the debt to him.  There won't be any debt.  Your lender has a security interest in your car and it has no doubt followed standard practice by recording that lien.  You won't be able to transfer title to the car until and unless your lender consents, which will not happen until and unless the loan is paid off.  Its just like a mortgage; the mortgage is recorded, and the house can't be sold unless the mortgage is paid off.   If, somehow, you managed to trade in the car without paying off the loan (I don't see how that can happen unless you commit fraud), your cosigner will sue you for any payments he has to make on the car loan.  On these facts, he will win.
Answered on Oct 14th, 2014 at 12:43 PM

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