Legal Question in Civil Litigation in California

Co-signer Rights

I co-signed on a vehicle for my neice. After she was late making the car payment 3 months in a row and was driving the vehicle without any insurance, I took possession of the car. I refinanced the loan shortly thereafter and added the vehicle to my insurance policy. The debt owed to the leinholder exceeds the value of the car. I want to sue her in small claims to recoup some of my fiancial losses due to her failure to perform her financial and legal obligations. Can I do this and does refinancing the vehicle in my name only exonerate her from any financial or legal responsibility to me?


Asked on 9/10/05, 4:54 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Co-signer Rights

If she's a deadbeat on the loan, she won't pay your judgment, either. Go ahead and go to small claims court. You could make a good case for an oral agreement, I'm sure. Then you could levy against her bank account and wages.

She would argue that refinancing would cap her liability as of the date you refinance. Good luck to you.

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Answered on 9/10/05, 8:06 pm


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