Legal Question in Credit and Debt Law in Pennsylvania

Co-Signed vehicle loan

I made the mistake of co-signing a vehicle loan for my mother in March 2006. She's paid the loan until early 2007, but since has been late four times, which has hit my otherwise superior credit. I am not on the title to the vehicle (I know, BIG MISTAKE). I know I am responsible in the case she can't pay. The balance is about $15k, which is something I could cover, the vehicle is worth about $11k. Preferably, I would like to have her sell the vehicle and pay the difference between the value and the loan (she is in bankruptcy now, but the vehicle loan was somehow exempt). She is not willing to do this. I've also offered for her to transfer the title to me, and me taking over all payments.

I know my legal options might be limited here, but I'd like some advise as to how to proceed without vasting too much money / credit on my end.


Asked on 2/05/08, 11:21 pm

1 Answer from Attorneys
John Gibson John W. Gibson, Esquire

Re: Co-Signed vehicle loan

A lot depends on whether this is a Chapter 7 or a Chapter 13. In any event, if the payments aren't made, the auto company may move for relief from stay and repossess the vehicle in which case the vehicle would be sold and you'd be liable for the deficiency. I suggest that the cheapest way out of this is to make your mother's car payment for her until she is able to resume payments.

Read more
Answered on 2/08/08, 3:57 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Pennsylvania