Legal Question in Credit and Debt Law in California

4 years ago my husband cosigned on a vehicle loan for his parents. My husband is the primary and his father is the cosigner because that is the only way the loan would get approved. Recently his parents have been having a hard time making the payments. The first repossession notice was recieved about 2 years ago and my husband and I ended up paying the past due amount of $1300 so it would not be repossessed. Since then my husband and I bought a home so we no longer have extra money to help them. To get to the point, a repo man came to our door asking for the car and I explained the situation and gave him our parents address to go pick up the vehicle. Last night we recieved a court summons saying the the bank was sueing us for $13000 plus lawyer fees since his parents refused to hand over the car and have been keeping it locked in the garage so they could not take it. We need some help on what to do next, is there any way to get my husband name out of this so only his parents are being sued? Also whats the next step we should take?


Asked on 5/12/11, 9:49 am

1 Answer from Attorneys
Tony Carballo Carballo Law Offices

His parents could be charged with a criminal offense (conversion which is a theft crime). It would be up to the District Attorney to file criminal charges if the bank reports the situation to the police department. No, there is no way to get your husband's name out of the lawsuit since he is liable on the debt. Your husband could file for bankruptcy if otherwise eligible but the bank could object to the discharge for failure to return the collateral (car). He needs to persuade his parents to make the car available for repossession. Maybe he can tell his parents about the possibility of criminal charges.

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Answered on 5/12/11, 12:17 pm


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