co-signer is spanish speaking and was unaware that they made him the primary person. he specified that we will only co-sign. the car was purchased for the daughter and the father co-signed. she moved out and we have no idea where she has the car and has not been making any payments. he tried to explain this the the lender but they said he's responsible which he wasn't aware that he was the main person on the contract and not the co-signer.
2007-12-27 10:52:20 · 24 answers · asked by Maria G 1 in Politics & Government ➔ Law & Ethics
No jail time will be involved, it's a civil matter, could be (most likely will be) sued for the balance owed, but is not a criminal offense to default on a loan.
2007-12-27 10:55:40 · answer #1 · answered by UNITool 6 · 0⤊ 0⤋
The co-signer is agreeing to pay the debt if the signer does not.. Thats the point of a co-signer.. Using the reason of never reading or understanding the document holds no water.. When you sign a contract you are agreeing to all the terms and stating that you understand this..
The co-signer is NOT the signer but is responsible to make good on the loan..
and there is no such thing as debt prison.. No one goes to jail for not paying a loan but it'll kill the chances of ever getting another loan. But if that person is with holding info from a police investigation then not telling the information you have could end you up in jail.
2007-12-27 10:59:18 · answer #2 · answered by Ditka 7 · 1⤊ 0⤋
It doesn't matter who is primary. Both signers are equally liable for the loan. Since the father is part owner, until the car is officially repossessed, it's not a crime to keep it. However, it is in the father's best interest to continue to make the payments even if the daughter is not paying her share. If not, it will end up as a bad mark on the father's credit, and possibly, the lien holder will sue him for the amount owing and get a judgment against him. If he can't afford the payments, it is in his best interest to get the car and surrender it to the bank. If the daughter won't give him the car, he can file a police report for a stolen vehicle and maybe they will recover it and find the daughter as well. If he just sits there and does nothing, he's going to see his credit go down the tubes and possibly have to deal with a civil suit. Good luck to you. :)
2007-12-27 11:01:45 · answer #3 · answered by bertha 3 · 1⤊ 0⤋
When you co-sign, you say, "If he doesn't pay, I will". It doesn't matter who is the primary and who is the co-signer. You're stuck. It's not likely you'll go to jail, but it will be reported to the credit bureaus and affect your ability to secure future credit. It's pretty sad that a daughter would do this to a father, but as a lender, this isn't the first time I've seen this happen to someone.
NEVER CO-SIGN FOR ANYONE, unless you can afford and are willing to make the payments yourself.
2007-12-27 10:57:16 · answer #4 · answered by Debdeb 7 · 1⤊ 0⤋
The co-signer cannot go to jail. However, the institution to whom the money is owed will seek to recover the amount due from the co-signer. Depending on the state the collection process can result in garnishment or a judgment in the amount owed. You cannot go to jail for owing money. Note, if the co-signer knows the location of the automobile and does not disclose this during a police investigation, that can lead to criminal charges for withholding information.
2007-12-27 10:59:01 · answer #5 · answered by rgrhourgr 2 · 1⤊ 0⤋
Co-signing means that you accept responsibility to make the payments if the other person defaults. So unless the father makes the payments which the daughter is not making, he could go to jail. She could, too. Maybe she needs to be told that both she and her father could go to jail if she doesn't buck up her ideas. Taking the car without paying for it is theft. Does she really want Grand Theft Auto on her CV?
2007-12-27 10:57:46 · answer #6 · answered by Cathy T 5 · 1⤊ 0⤋
Yep, he's responsible for the payment but not for car theft obviously. But he would probably have to report the car as stolen.
Hey, maybe he could just file an insurance claim for a stolen vehicle and come out clean on this. Then the no good daughter goes to jail and thus God makes all things wonderful!
2007-12-27 10:56:55 · answer #7 · answered by Anonymous · 0⤊ 0⤋
This is America. THERE IS NO DEBTORS PRISON!
The worst thing that will happen to you as the co-signer is that your credit will get smuffed up for up to seven years. He is responsible because by co-signing he is saying that he will pay if she does not.
You cannot report the car as stolen if her name is on the title. And since it is a co-sign deal, BOTH names are on the title, so don't bother calling it stolen.
Nevertheless, there is NO jail time for an unpaid debt! God Bless America!!!!!!!
2007-12-27 11:07:44 · answer #8 · answered by Rebecca 7 · 1⤊ 0⤋
I am not a lawyer, however i think that both could end up in jail as an accomplice, if either one is hiding the car in attempt to steal it and the other person is providing protection for the one hiding the car. Probably want end up in jail, but a lein might be put on your car, house and other personnel property.
If I signed the loan papers as the owner of the vehicle, I would take ownership of the car and pay the loan off.
2007-12-27 11:03:57 · answer #9 · answered by humpty dumpty 1 · 0⤊ 0⤋
the co signer is responsible for the payments if the daughter fails her obligations of payments that's why lenders get co signers to improve their chances of payment.i have not heard of a cosigner going to jail whatever equity was used to secure the loan could be taken as payment though
2007-12-27 11:03:32 · answer #10 · answered by big nickel 6 · 0⤊ 0⤋
The co-signer is equally responsible for payment on the car.
If the daughter has run out, then the father will be held responsible.
They won't put him in jail but they WILL take him to court if necessary to collect their money.
Big lesson learned.......don't EVER co-sign a loan for anyone.
2007-12-27 12:54:58 · answer #11 · answered by Anonymous · 1⤊ 0⤋