Legal Question in Credit and Debt Law in Georgia
Auto Loans
I am cosigned into an auto loan with my uncle in which he is the primary and I am the secondary on the account. The loan of course shows up on my credit report but on the paperwork and at the bank he is listed as the primary. Ive made some payments on his behalf but I cant afford to keep it up and the car will soon be repossessed because he cant afford to pay it. How much damage is this going to do to my credit and will I be responsible for the remaining debt being the secondary on the account?
2 Answers from Attorneys
Re: Auto Loans
"Primary" and "secondary" rarely (if ever) make a difference because in all likelihood you are both liable for the full amount. Read your contract! If he can't pay, they will come after you. Co-signers generally get all the risk, and none of the bnefits (ie, the use/ownership of the property).
Re: Auto Loans
There is no such thing as "primary" and "secondary." People should NEVER cosign any loan they don't plan to be paying themselves.
You are liable. Your credit will be hurt badly for 7 years, and after the vehicle is auctioned, it is likely that you will be sued (and then face things like garnishments) for what usually will be a large sum of money.
You may want to consider bankruptcy if you are unable to pay.
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