Legal Question in Credit and Debt Law in California

Repossession: obligation for co-signer

When a car is repossessed because the owner defaults on a car loan, then the co-signer is obligated to pay. If the co-signer defaults as well and the car is repossessed, a judgement will be made to collect the difference owed. Here is the situation: The car owner is unemployed and living in California. The co-signer is employed and living in Maryland. How is the judgement made to cover the deficiency once the car is repossessed and sold? If the co-signer is married, can his spouse's assets or any jointly owned property be touched? What will happen if the owner eventually gets a job during the course of repayment? Will the garnishment for the difficiency be transferred to the owner, or remain with the co-signer?


Asked on 2/25/98, 1:39 pm

1 Answer from Attorneys

Brett Weiss Brett Weiss, P.C.

Repo and Co-Signer

Once a judgment is entered, the lender can collect from the co-signer even if the borrower is employed--it can choose to collect from whomever offers the easier path to getting paid.

The co-signer would then have a claim against the borrower.

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Answered on 2/26/98, 6:12 pm


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