Legal Question in Credit and Debt Law in Illinois

I naively cosigned on a car for a supposed friend. It was his car--I never drove it and never intended to drive it. I just thought I was doing something nice. He made his payments regularly until May when he was involved in a car accident and totaled his car. To make matters worse, I found out that he was uninsured at the time of the accident. Since then, he has stopped making payments, quit his job and moved out of state. He is not returning my calls now.

Wells Fargo Dealer Services is now calling me for the unpaid car payments (I have not answered any of these calls because I don�t know what to say). There was a letter from Wells Fargo as well, explaining that since we have failed to provide proof of insurance, they have purchased insurance and these costs are being added to what is already owed. They obviously don�t know that the car was totaled and towed somewhere (there are probably costs and fines with the company that towed the car as well).

This whole situation is a nightmare! I thought I was just helping a friend. I am clearly an idiot for not taking the time to consider the possibility of something like this happening. I am still in disbelief that my �friend� would do this to me. No good deed goes unpunished, I guess.

I do not have the money to pay for any of these costs. And I wouldn't want to� because it seems so unfair. Is there anything I can do? Please... any advice would be greatly appreciated. My credit is already being impacted (which is the least of my problems, I guess). I have always been the type of person to pay my bills on time and to be responsible. That is why I was eligible as a co-signer. I have no idea what to do... Or if there's even anything I can do. Please help!

Someone mentioned bankruptcy to me. I do not have much money in the bank (at all), but I do have a full time, salaried job. Would I even be eligible for bankruptcy? Is this a good option for me?

Thank you in advance! I appreciate any advice or help.

Lauren


Asked on 8/06/14, 4:41 pm

1 Answer from Attorneys
Michael Goldberg Johnston Tomei Lenczycki & Goldberg LLC

Hi Lauren,

There is no use beating yourself up over the mistake at this point. Depending on how much you owe for the car, as well as other debts you might have and your income level, bankruptcy is probably a good option for you. Please contact my office if you would like to discuss further whether you might qualify for bankruptcy. We offer a free two hour consultation with a bankruptcy attorney. No sales pressure, and no commitments until you are ready to file.

If for some reason bankruptcy is not an option for you, you may be able to settle the debt by paying a partial amount of the balance due. I hope this information helps.

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Answered on 8/07/14, 8:26 am


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