Legal Question in Credit and Debt Law in California

Automobile Cosigner Responsibilty

Hi, my Mom co-signed an automobile loan for her boyfriend. He has had the car for over a year and it is registered to him (the car company did this ) but the loan is in my Mom's name. He has not been late on a payment yet, but is having financial hardship right now and is afraid he will not be able to make his payments. Is he allowed to return the car is he is unable to make payment ? If so, how does he go about doing this, and what are the legal ramifications for my Mom ? He is a good person and wants to do the right thing ?

Thanks


Asked on 3/14/02, 12:11 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Automobile Cosigner Responsibilty

He should try to sell the car for more or the same that is owed on it. If it is returned, it could be considered a voluntary reposession, which could have a negative impact on her credit rating. The lender could also sell the car at auction, in which case they might not get everything that is owed. Your mother would then be responsible for the difference.

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Answered on 3/14/02, 1:26 pm


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