Legal Question in Credit and Debt Law in Maryland
Co-signer's obligation when credit-holder defaults
My husband is a co-signer for a car loan. The car owner is unemployed and prospects for employment in the near future are dim. We have made several payments for the car purchased in December 1996, but are finding it difficult to continue to do so. The loan originated in California, (where the car is) but my husband signed the papers at our home in Maryland. Does this effect the loan in anyway? What will happen if the car is repossessed? I believe Maryland does not have community property laws. Can they come after my assets?
1 Answer from Attorneys
Co-Signer's Obligations
Unfortunately, it would appear that the car company can go after your husband on the loan. If the car is reposessed, it is likely that it will sell for significantly less than the amount of the loan; in this event, your husband would be liable for the deficiency.
They cannot come after jointly held assets or assets held in your individual name.
If I can be of assistance in this matter, please give me a call at (301) 570-8976.
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