Legal Question in Credit and Debt Law in Florida

Backing out of a co-signed loan?

About two years ago, we co-signed a loan for our daughter on a vehicle. She is now having problems coming up with the payments and at times is paying late. Unfortunately, if she defaults, we do not have the extra money to cover her payments.

We had a bankruptcy about 3 years ago and are working hard to build our credit back up again. What can we do, if anything about this situation? Can we get our name off the loan? She cannot refinance with this bank as she already has another loan with them and is behind on those payments as well.


Asked on 12/25/01, 9:04 am

2 Answers from Attorneys
Anthony Comparetto Comparetto Law Firm

Re: Backing out of a co-signed loan?

You can try and negotiate that with the bank. Normally they may want a buy out payment to take your guarantee off the loan. It may be more cost effective to put money aside to help your daughter if she gets behind. There is no good answer to this question.

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Answered on 12/25/01, 9:32 am
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Backing out of a co-signed loan?

You are stuck. You have two other options. a. try to settle with the bank an b., depending upon the the nature and extent of your debt, file a ch 13 petition.

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Answered on 12/25/01, 10:51 am


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