Legal Question in Consumer Law in New Jersey

car loan

i did sign a car loan to the husband of my niece.i made this as a favor to him and he is not making the payments,after nine months he is just driving the car and he is not even paying the insurance for this car,he is not answering my calls,the bank calls,my credit is already spoiled and somebody told me bring him to court and i do not know what i need to do.please answer my question.thankyou.


Asked on 1/09/09, 8:20 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: car loan

You are liable on the loan in the same way that you would be if if the car was yours. That's what co-signing means. The only difference is that you don't get its benefit. You can sue him for your damages and perhaps get the car to compensate you. That will take money, time, and work and may not result in getting anything.

To be sure of your position, get a lawyer to look over the papers to see if there might be a defense against the lender for predatory lending or the like. You might also be able to negotiate a reduction or a payment plan

You should also learn from the experience. In years of writing for Lawguru, I have found that any question from a co-signer almost always brings bad news. That is especially true where the debt is with some friend or distant relative. Don't do that again..

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 1/11/09, 10:41 am


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