Legal Question in Credit and Debt Law in Georgia
Co-signed for auto loan now repossed
I co-signed for my friend a truck, Nissan took his trade in and basically he financed 50k for a new Titan truck. He never made one payment; six months later, I'm turned down for a second mortgage due to repossesion. Can I fight this? I was not given the opportunity to assume the payments, which I would have done to protect my credit. Nissan sold the truck and now are asking me to make arrangements to repay 21k. Is there Hope if I go to court and fight? And, will they place a lien on my house or garnish my wages if I dont comply with their demands?
2 Answers from Attorneys
Re: Co-signed for auto loan now repossed
Yours is a common problem with co-signing. Your situation is covered by your documents. If there is a notice requirement, you may have a complaint. There probably is none, but check the paperwork. Otherwise, you placed your trust in your friend. Co-signers generally have all the liability, and none of the benefits (such as use of the truck or property). It is possible that they sue to and get a judgment, and then place a judgment lien on the property. You may also consider suing your "friend" for any amount you have to pay, if the friend has anything to pursue.
Re: Co-signed for auto loan now repossed
When you cosign for a loan you are being asked by a bank to be just as liable as the person you cosign for precisely because they checked the person's credit and knew they wouldn't pay. In other words, no one should ever cosign a debt unless they are willing and able to pay it.
You can be sued, and when you lose (which you will), they can attach your home, your bank account, your wages and other assets.
You should consider seeing a bankruptcy lawyer to evaluate if that is an option for you.
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