Legal Question in Credit and Debt Law in Nevada

We bought a car with a co-signer. We made monthly on time payments. The co-signer needed to take out a third mortgage. Which the finance company for mortgage loan told him he needed to to get rid of some debt. He paid off the car loan within 4 months having purchased the car without getting our permission or consulting us first. We got the car in the first place to rebuild our credit so we may someday get approved for a house loan on our own. Can he sue us we have possesion of title and vehicle? Car bought in June 2006 and paid off in October 2006 being sued as of July 2010.


Asked on 7/27/10, 9:11 am

1 Answer from Attorneys
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

Yes but the Judge will probably only require you to pay pursuant to the original agreement with the car people. The problem is that if he sues you, your credit score will go down. The finance company is correct that his credit score will be better if he pays off the car loan.

An attorney can get the case dismissed and prepare a payment plan for you. The key question is whether you have made payments to him since October 2006. Most car loans are at most 5 years, meaning your balance should be paid by May 2011. If you haven't made any payments since October 2006 to the co-signer, the judge might just enter judgment for the whole amount since you have not acted fairly to him.

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Answered on 7/27/10, 1:05 pm


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