I cosigned for a car with a friend a couple of years ago. The only reason i did this was the dealer had told me that within a year my name would have been removed. So two years later she can't afford to make the payments on the car. I find out that she let the car go into repossession. Months later it shows up on my report saying we still owe about $13,000. She is now claiming to file for bankrupsy and she tells me when she does this is will remove the car from my report. I don't believe it I think I am going to become fully responsible for this. I think it's unfair because I did her a favor in the first place. Can someone please help me.
2007-02-20 06:02:02 · 9 answers · asked by MIA 3 in Business & Finance ➔ Credit
I've been trying so hard to keep my credit good and I didn't want to have to file for bankrupcy too.
2007-02-23 00:47:09 · update #1
Once she files bankruptcy the creditors will come after you. Also it depends on what type of bankruptcy she is doing. But they will still more than likely come after you. A consigner is the person that guarantees this loan will be paid in the event that she doesn't pay. Which she didn't, they were right not to extend any credit to her.
2007-02-26 18:23:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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2016-09-26 06:06:51 · answer #2 · answered by Tyson 3 · 0⤊ 0⤋
Obviously, as you found out, the dealer lied to you. You're name is on a loan until it's paid in full and by co-signing you're agreeing to take full responsibility for the loan should they fail to pay it. In short, you are on the hook for the $13,000.00 and more than likely they will be calling you for it. As far as her filing bankruptcy on it - I don't think that'll remove it from your credit report. One suggestion here would be to call your attorney. There may be a way to remove it given that they didn't contact you when she defaulted on the loan - therefore, you weren't given a chance to keep it current.
I'm sorry. I know it's hard when all you wanted to do was help your friend, but cosigning's never a good idea. I've had to turn down some friends and family. They don't realize at the time what kind of a position this will put you in. I hope you're able to work this out! Next time, just apologize and tell them you can't.
2007-02-20 06:09:10 · answer #3 · answered by reandsmom77 6 · 1⤊ 0⤋
Actually, you will be afforded protection under her bankruptcy. The problem is that it will stay on your credit (as a bankruptcy). The lender is required to notify you (as cosigner) of default, however, if you moved and never changed your address with them, or if you listed your friend's address on the loan application, you are at fault.
FYI... most lenders will NOT remove a cosigner from a loan. They would lose that security. Odds are, when your friend bought the car, they didn't qualify for the loan, which is why you were asked to cosign.
2007-02-25 02:47:45 · answer #4 · answered by khill 2 · 0⤊ 0⤋
Get a copy of the loan agreement. Then talk to the company about gettng your name removed. Make sure your credit report doesn't show this dispute, once she files for bankruptcy, it may be very hard to fight.
Never co-sign anything for a friend...my sister did that for her boyfriend and got screwed.
2007-02-27 03:19:01 · answer #5 · answered by Pepper 6 · 0⤊ 0⤋
If she files bankruptcy, they creditor will come after you because they can't get it from her.Her filing bankruptcy has nothing to do with your credit report. She is wrong. The dealer lied to you since when you cosign, its the same as you buying the car. I would take your friend to small claims court and try to get the max amount from her to cover her half. She screwed you and you would have a case.
2007-02-20 06:06:44 · answer #6 · answered by Anonymous · 1⤊ 1⤋
she lied to you. if she files bankruptcy that will make you fully responsible for the loan. the dealer lied to you also. you signed a contract for the entire length of the contract. he was obviously desperate to make a sale and took advantage of the fact that you did not know what you were doing. the only way out for you is to file bankruptcy as well.
2007-02-22 16:25:34 · answer #7 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
first off what chapter is she filing? and the loan company can show up at this bankruptcy to see if there is anything they can get .heres a couple of choices 1 sue her 2 pay it off 3 file bankruptcy.
2007-02-20 06:24:34 · answer #8 · answered by dan m 6 · 0⤊ 0⤋
no, it will not affect whether or not you still owe the loan. you WILL in fact still owe the loan. go down to small claims court and for 20 bucks you can file a claim up to 5 thousand dollars. take her to court and get what you can before she files for bankruptcy
2007-02-27 14:49:18 · answer #9 · answered by HEATHER 1 · 0⤊ 0⤋
You have to be careful who you cosign for because YOUR credit is at stake too. If the person to whom the loan is given doesn't pay, they can come after you.
There's nothing you can do about the mark on your credit report...just next time, be careful!
2007-02-20 06:11:27 · answer #10 · answered by ? 6 · 1⤊ 0⤋