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 21:59:17 · 10 answers · asked by kikoball 2 in Politics & Government ➔ Law & Ethics
You can tell the finance company that you intend to file bankruptcy if they pursue you, that you know your friend has assets and they might as well pursue him directly.
If they sue you without also suing him, then you have to interplead him.
You don't say where you live. The court clerk can show you the forms necessary to interplead somebody and bring him into a case where he is responsible for an eventual judgment against you.
2006-09-17 22:05:11 · answer #1 · answered by Anonymous · 2⤊ 0⤋
1
2016-09-26 17:43:10 · answer #2 · answered by Kathy 3 · 0⤊ 0⤋
The best thing now is to work out a repayment plan with the finance company. Most companies wouldn't want to incur any legal cost to get their money back if you are willing to cooperate and work out something that is agreeable to both of you. Don't avoid them and their calls to you at all cost, this will lead them to take even more firmer action against you. If in the event, both of you cannot reach an agreement as you find the instalment too hard to sustain, approach the credit counselling service, they will help you in your negotiation with your creditor. They may not have 100% guarantee to convince the creditor to give you a smaller installment a month, but they are professionals in this field of negotiation, and with their help, u may just get a better deal than if u do it alone.
If you know your friend does have movable assets like TV, computers, or even antiques and such, something valuable, your creditor will be happy to get this info from u and seize his assets. But if it's HDB, then they probably couldn't do anything much since you can repossessed the HDB unit, it's the property of HDB and they can't touch it.
So, start working on negotiation with the finance company and approach credit counselling singapore if need to.
2006-09-18 02:23:05 · answer #3 · answered by firefly 5 · 1⤊ 0⤋
Well, co-signing, or being the "guarantor" of the loan mean that you are guaranteeing that your "friend" will pay for the car - and if they don't you will.
Obviously, this is not something you should do lightly. In the future, you just be very wary of doing it for anybody - except, perhaps, for your own children (if you have any).
I would suggest that you contact the finance company - and explain your situation, and see what you can work out with them. If the car has been reposesed - that should reduce the amount of money owed to them. I would seriously consider telling the finance company where your friend works - and see if they can garnish his wages (set up a court order that takes money straight from their employer before it even gets to their paycheck).
I would also talk to this person and tell them you're mighty peeved because now the finance company is expecting you to pay for their car.
I suppose you could try contacting a lawyer and see if there's a way you could get out of this - but I seriously doubt it.
If your friend has money that you believe could go to pay the bill, you could take him to small claims court to try and get the money - and use that to pay the finance company - but I honestly don't know if that would work or even be possible.
2006-09-17 22:10:56 · answer #4 · answered by Flint 3 · 2⤊ 0⤋
As his guarantor, you are responsible for the entire amount. You have to pay the finance company. After you have paid the finance company off, you can then sue your friend. Once you get a judgment against your friend, you can put a lien on his property and possibly force a sale of his property to get the judgment satisfied.
2006-09-18 02:56:17 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Too bad. I wouldn't worry about jail time, but you probably will not be getting any credit cards or financing anything for the next 7 years or so. Not much you can do legally to your friend either. You might can try a lawsuit against him, but it probably won't hold much credence because you willingly signed the loan with him. Your credit will take a BIG hit.
2006-09-17 22:08:51 · answer #6 · answered by DLUVDAIMPERIAL 3 · 0⤊ 0⤋
If your friend able to pay you, he already pay to the bank. Take note that you can acquire a HDB flat.
2006-09-20 17:33:57 · answer #7 · answered by Tan D 7 · 0⤊ 0⤋
This a lesson learned the hard way huh?? To say the least!! NEVER co-sign for anyone! Your "friend" sucks....and you're screwed. Sorry.
2006-09-17 22:09:27 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Thats why you should NEVER sign FOR ANYONE..lesson from my father...
2006-09-23 05:08:42 · answer #9 · answered by Lindsey 2 · 0⤊ 0⤋
take him to court! go see Judge Judy
2006-09-22 07:48:46 · answer #10 · answered by DAYNA S 2 · 0⤊ 1⤋