Legal Question in Credit and Debt Law in Texas

collecting a debt from inlaws

I am a co-signer on a loan for a vehicle for an inlaw. They listed me as the primary. He has been making payment for about two years and now the vehicle is broke and needs repairs and he has money problems. If I have to take over the payment on the loan, I will have to repair the vehicle and try to sell it, I do not want the vehicle. The vehicle will never be worth the amount still owed on it. How can I get my money back from him if I take over the payments? The cost of the repairs? The difference between what I sell it for and the amount owed on the loan? Thanks


Asked on 10/12/02, 8:47 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: collecting a debt from inlaws

Since you co-signed, if he fails to make the payments the lender will look to you. Your co-signing said that you will guarantee payment. You are responsible whether the vehicle is repaired or not.

If your in-law won't pay you the money that he owes you, your only choice would be to sue him. That would probably be an exercise in futility, since he's pretty much broke at this point or he'd keep up the payments and make the repairs.

You'll have to sue him within four years from the date you first had to lay out money because he failed to do so. However, the judgment that he owes you the money is good for ten years. If he doesn't pay you within that period of time, you can revive the judgment for another ten years, and keep going until paid or his estate pays.

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Answered on 10/12/02, 10:47 am


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