Personal lawsuit over car loan co-sign
- This topic has 1 reply, 2 voices, and was last updated 10 years, 5 months ago by
.
-
Posts
-
Two years ago I co-signed a car loan for a fried. It turns out that he lost his job, stopped making payments and has recently filed bankruptcy. Now I’m getting sued for his debt?! WTF?
Just one of life’s “rewards” of loaning your credit to someone else
Unfortunately, people tend to co-sign too freely, without understanding the full consequences of their actions.
When you co-sign for someone else, you’re taking full responsibility for the loan. You probably haven’t checked your credit report lately. I suggest that you take a deep breath before you do. The late payments, repo of even charge-off may already appear on YOUR credit report, and your score has probably dropped by at least 150 points.
Not only your credit is ruined, since the other person filed bankruptcy on the car loan that you co-signed, you are now entirely responsible for that loan. If the lender would repossess the car, you will also be held responsible for the loan balance plus legal fees!
Since that other person filed bankruptcy, you have no recourse against him. Just one of life’s many “rewards” of loaning your credit to someone else.
- You must be logged in to reply to this topic.