Legal Question in Credit and Debt Law in New York

Car repo and loan co-signer

Unfortunately co-signed for a car loan for a friend. She is refusing to pay the loan. Her name is the only one on the title. The car is worth $7000 less that is owed. How will the default on the loan be persued? Will they go after her or me or both? Can I sue her for the money that I have paid on the car? Should I pay it off and take the loss or let the car be repossesed?

Thanks,

V


Asked on 10/22/07, 1:50 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Car repo and loan co-signer

Q. How will the default on the loan be persued? Will they go after her or me or both?

A. Probably both.

Q. Can I sue her for the money that I have paid on the car?

A. Yes. Since you did not have use of the car and the understanding was that you would co-sign the loan to give your friend credit for the car, you would have the right to seek indemnification for the loss.

Q. Should I pay it off and take the loss or let the car be repossesed?

A. That is a business (not a legal) decision.

Mike.

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Answered on 10/22/07, 2:33 pm


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