Legal Question in Credit and Debt Law in California

I am a co-signer and co-owner of a car. The car was left to the other party to make payments and as of three years ago I have no contact with the party and no access to the car. I was notified on 07/05/10 that the car was 110 days delinquent in payments and in repossession status. I was called in order to obtain payment or information or find the car. According to the creditors, the other party was untraceable and they had not found the car. At 120 days the car would be in charge-off status hurting my credit further. I took immediate action to try to work with the creditors to find the car. The car has been found by me, but I do not have a key to voluntarily turn in the car. I alerted the finance company for them to immediately pick up the car. If the car is picked up in repossession status I have 10 days to decide whether to take the car back in my possession or let the finance company auction the car. The advice I need is in regards to my credit. What are my possibilities to take the car back and put it only in my name proving he is delinquent and I am willing to be responsible? What will benefit my credit most if there is much of a difference between my two options? I appreciate any advice that I may receive. My decision to help a friend was a mistake and I've had to live with the consequences. I would like to concentrate now on fixing my credit for the future. Thank you.


Asked on 7/07/10, 7:52 am

1 Answer from Attorneys
David Gibbs The Gibbs Law Firm, APC

Credit issues are really not a legal question. The credit scoring model employed by most creditors is called FICO, and it is a proprietary model that is a pretty well-guarded secret. What effect certain actions will have on your score is not really something anyone on this forum can answer, especially because it is all inter-dependent. What the effect of one action might be on individual "A"s credit, is going to be different for individual "B" because of their different credit situations. It is clearly better if you get the car back, reinstate the loan and continue making the payments until paid in full. Even if the car is solely in your name, do not attempt to go repossess the car yourself. Doing so may (a) get you killed, and (b) is probably illegal self-help. Let the repossession company recover the car, then reinstate the loan with the lender and take the car from impound. Letting the car go completely is going to be worse for your credit without question. How bad is just not something anyone but a credit expert can tell you.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

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Answered on 7/08/10, 4:48 pm


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