Legal Question in Credit and Debt Law in Wisconsin

Default on loan

I co-signed a loan for an auto. The loan was through the dealership where the vehicle was purchased. The other individual on the loan agreed, in front of the loan officer, that if any single payment was missed, I would reposses the car. Well, he missed a payment and I did gain custody of the car. But now I'm stuck with a car I don't want that is not worth nearly what is owed (even after refinancing). Do I have any legal right to compensation for what I've paid either in payments or repairs (I immediately had to replace the brakes and tires)? I would even settle for half of the loss I'll take when I trade it in! What, if anything, can I do? (Besides never co-sign for anyone again)


Asked on 5/22/07, 4:14 pm

1 Answer from Attorneys
Thomas Olson David F. Gram & Associates, LLC

Re: Default on loan

You don't say what has happened to the person you co-signed for. If that person is collectible and you didn't cosign for him/her as a result of some other agreement or consideration you received, you should have a claim for your damages, being your out of pocket loss. If that person is not collectible, however, and/or files bankruptcy, you are stuck.

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Answered on 5/22/07, 4:39 pm


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