Legal Question in Credit and Debt Law in New Jersey

Co signer problem
I co signed a car loan with my sister because she was moving in with us (rent free) to help watch my daughter because my wife and I both work and we wanted her to have a reliable car. She was never around to help so when I confronted her she complained and moved out and she defaulted on the loan. I was contacted by the bank and when I spoke to my sister she said that the car had been stolen. At this point, I figured great, insurance should take care of this. As it turns out, she did not have insurance on the car. Believe it or not, the car has since been recovered and auctioned off, for a loss of course. My question is: Am I still on the hook for the $1800 that is still owed? Did she break an oral contract?

Asked on 11/18/03, 8:33 am

Bernard J. Berkowitz Berkowitz & Raiken

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Re: Co signer problem

You are responsible for what is due, but you can sue your sister for whatever you have to pay. Try to negotiate a payoff.

Answered on 11/18/03, 10:53 am

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