I'm the guarantor of my friend's car loan. Now his car got sold off my finance co due to default of payment and I'm being pursued by the finance co to help him to pay up a huge 5 figure amount.
He doesnt seemed to be willing to pay and i've been told by the finance company that if i dont pay up, they will take legal actions against me.
I really regretted being this friend's guarantor but there's really no use crying over split milk now. I have two old parents and what i earned is barely enough to cover all the living costs. How am i supposed to help my friend pay off this 5 figure amount?
I would like to know, any one of you encountered the same problem? Is there any alternative methods that i can take? Such as, legal actions against my friend? I know my friend still have assets under his name, such as his HDB flat, possible to get the finance to issue an injuction to him or acquire his flat?
Any advice is appreciated, kind folks!
2006-09-17 21:48:56 · 10 answers · asked by kikoball 2 in Cars & Transportation ➔ Buying & Selling
As the Guarantor of this loan you have legally promised the finance company that you would accept responsibility for the debt should your friend default.
Unfortunately, this leaves you wide open to repay the difference between the car loan amount--(plus fees), and the amount the car was sold for after repossession.
You can try to negotiate this amount, or possibly--but not likely--arrange a payment plan.
Perhaps you can borrow this amount from the bank if your credit has not already been tainted by the default. If all else fails you can file bankruptcy (limited to this debt)but keep in mind that this will stay on your credit record for 7-9 years.
Also try getting your friend to sign a promissory note for the amount he owes you. This you can use against him in civil court if he does not honor his promise.
2006-09-17 22:04:44 · answer #1 · answered by Anonymous · 2⤊ 0⤋
1
2016-09-26 16:14:55 · answer #2 · answered by Debra 3 · 0⤊ 0⤋
Like others have said, you're pretty much screwed. That's the risk of co-signing a loan, if the other defaults, you're on the hook for it.
Well your first warning sign should've been that at his age (guessing early 30s) he shouldn't have a problem getting a loan on his own, unless he's defaulted before and ruined his credit.
I guess you can sue him in small claims.... but if he can't pay the creditor, he probably can't pay you either. And even if you win, judgements are capped at $5000 in most states.
2006-09-17 23:18:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Sue the friend. But an attorney may cost as much as the debt.
Small claims court may rule in your favor and place a judgment on your friend.
With that and $2.00 you can buy a cup of coffee at Starbucks.
A judgment does not guarantee payment.
It has to be pursued by an attorney.
The judgment will "hurt his credit". Course, it appears to be already dead.
When will our schools, starting in the third grade, teach mathematics in relation to real life?
Tell the creditor you will pay them $5.00 per month. If they refuse, save all paper work and let them sue. You will have proof of offer to pay. They can't get blood out of a turnip.
There are lots of turnips, so don't feel alone.
2006-09-17 22:10:15 · answer #4 · answered by ed 7 · 0⤊ 0⤋
For Credit and finance solutions I recommend this website where you can find all the solutions. http://creditandfinancesolutions.info/index.html?src=5YAPHb6aKJuot1
RE :I'm the guarantor of my friend's car loan. Now his car got sold off my finance co due to default of payment.
I'm the guarantor of my friend's car loan. Now his car got sold off my finance co due to default of payment and I'm being pursued by the finance co to help him to pay up a huge 5 figure amount.
He doesnt seemed to be willing to pay and i've been told by the finance company that if i dont pay up, they will take legal actions against me.
I really regretted being this friend's guarantor but there's really no use crying over split milk now. I have two old parents and what i earned is barely enough to cover all the living costs. How am i supposed to help my friend pay off this 5 figure amount?
I would like to know, any one of you encountered the same problem? Is there any alternative methods that i can take? Such as, legal actions against my friend? I know my friend still have assets under his name, such as his HDB flat, possible to get the finance to issue an injuction to him or acquire his flat?
Any advice is appreciated, kind folks!
Follow 10 answers
2017-03-26 14:06:13 · answer #5 · answered by Broderic 6 · 0⤊ 0⤋
Car Loan Guarantor
2016-06-22 22:45:34 · answer #6 · answered by margareta 4 · 0⤊ 0⤋
sorry but you took on the loan for your friend. you need to try to talk with your friend about helping you out of the mess he got you in
2006-09-23 05:37:59 · answer #7 · answered by Billy T 6 · 0⤊ 0⤋
sorry to hear, i was in the same, with my husband. i went to court and told the judge that i couldn't pay, low income. the judge dismiss the case.
2006-09-25 11:50:38 · answer #8 · answered by puddin58 1 · 0⤊ 0⤋
did you make your friend sign a contract? if not than you messed up and in the end could have to pay the whole amount. i hope you learned a lesson.
2006-09-17 22:22:02 · answer #9 · answered by -^-Smooth C-^- 4 · 0⤊ 0⤋
I would say that Vicki G is right.
2006-09-24 13:43:19 · answer #10 · answered by Anonymous · 0⤊ 0⤋