Legal Question in Bankruptcy in Utah

Co-signer on Auto loan

I was a co-signer on an auto loan which my father filed bankruptcy on over 5 years ago. We contacted the creditor at that time to surrender the vechicle and they would not take it (he did not file a reaffirmation on this loan). They asked us to send payments to an unmarked po box but advised they were legally unable to acknowledge the payments. I also disputed the amount on my credit report with the bankruptcy information and they accepted the dispute and it was removed from my credit. I thought this matter was resolved but expected them to reposses the car, which they never did. Now, 5 years later they are demanding the full amount paid from me. I feel that if they would have taken the car 5 years ago when I asked, I would be paying less of a difference in the amount owed and the amount the car was worth. Is this legal and is there a time limit in which they need to contact the co-signer to collect the debt? What options do I have to resolve this matter?


Asked on 1/18/07, 6:13 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Co-signer on Auto loan

This BB is for general questions of law. Your case is very fact specific and cannot be competently answered without reviewing all of the documents. Generally, a creditor has an obligation to mitigate its damages, including here to pick up the car and sell it. On the other hand you have had the use of the car for 5 years, which is of some value to you. You should contact an attorney to review everything.

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Answered on 1/19/07, 11:38 am


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