Legal Question in Credit and Debt Law in Georgia
I am listed as co-borrower of auto loan originated about one year ago. My spouse is the other listed borrower and he is the only driver of this vehicle. I have another auto loan with same company from 2007 and am in good standing with this car; it is the one I drive primarily. I pay for both car notes; my husband doesn't work; he is legally disabled and draws small social security, not enough to pay for all his expenses. We are getting divorced this year, I moved out of state for a job in December of last year to Alaska; I am back in Atlanta for a month to take care of some issues. I notified my husband verbally in January 2011 that I would no longer pay for this car note, he had to take some responsibility for it. He said he would; of course I shouldn't have believed it. I find out that he hasn't paid any notes and it's now four months behind. XYZ Auto Finance wants to repossess the car, apparently already sent one repo team out and the car was in closed garage. Since I've been back in Atlanta, I have talked to XYZ Auto Finance and they do not want to negotiate; they have filed summons and writ with a local attorney. I responded last week to the summons within time allowed, seven days. I receive a phone call today from Auto Collections telling me to put the car outside the house and they are picking it up tonight or tomorrow morning with a repo team. I told him the circumstances and that i wanted a chance to make good on the back payments, that with some negotiation I could bring loan back into good standing within a month; and he said it was too late. I called their attorney's office and they told me I'd have to file for a hearing. I don't know much about these things, having never been in such a situation. Can the repossession take place as they describe. Would a hearing make any difference when their attorneys told me that the auto loan company is not interested in my offer of making up back payments, they just want the car. I don't have enough money to hire an attorney this week while all this is going down; as matter of fact, I am due back to work, out of state, for my new assignment by end of next week. Thanks for any comments, suggestions. BCD
p.s. by the way, my husband and the salesman at the dealership signed my name on the sale papers. I told my husband at that time I couldn't afford another car note; they must've run my husband's credit and couldn't purchase it without my name on it. I recently found the original yellow copy and the signature is clearly not mine. I confronted him about it but decided not to do anything at that point since we did need the other car and I was making payments. However, now I look pretty stupid. Is there anything that can be done about that at this time. I did not sign the papers; my name appears on this title illegally.
2 Answers from Attorneys
Since you allowed this loan to be out there for all this time, you can't (without probably going to jail) complain now that it wasn't your signature when you never complained before. Any car lender at that point would surely complain about your fraud (you've paid all along without ever complaining).
When you sign a car note, you are liable - period. They don't have to negotiate at all. You wither need to pay them, file bankruptcy, or watch them win a lawusit and then go after your wages and bank accounts and assets.
You should have complained long before now about the car. It is probably a moot point as you have continued to pay until recently. Since your name is on the car loan, you are responsible along with your husband.
Read the car note carefully - if it allows the lender to accelerate the debt, the lender can demand, not just what is owed, but the whole amount due.
You have a couple options:
(1) File bankruptcy as it will put a halt on any repo and allow you to possibly keep the car and work something out;
(2) Since you do not live in Atlanta, GA, the question is, do you have any property in GA at all besides this car? If not, they may not get anything. They can transfer a GA judgment to Alaska or whatever state you reside in. If you own property in Alaska, then it may be at risk. I am not licensed in Alaska and you would probably need to speak to an Alaska attorney about that;
(3) Come up with the full balance owed - try to borrow the funds and essentially refinance the car. You are going to have to have sole ownership of the car as a new lender may not be willing to refi if it is in your husband's name;
(4) Allow the car to be repossessed and sold. Cars are usually sold at auto auction. They typically bring in a lot less than what the car is worth and definitely a lot less than what is owed. You do not indicate what the balance is on the car. However, if it ends up that you still owe money, the good news (not that there is really any good news) is that the remaining balance is like any other unsecured debt - it can be negotiated. You can resolve this hopefully and then go after your ex-hubby for paying for more than your fair share.
(5) Hire a lawyer NOW and maybe the lawyer will be able to assist in getting sokmething worked out.
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