Legal Question in Credit and Debt Law in Wisconsin
who is responsible for the remainder of the loan
I signed as the buyer, my ex as co-buyer. Under the co-bury terms it says that as the co-buyer you assume responsability for payments that are due or may become due and any amount that is due to repossesion even though the buyer may be working and can make the payments. You may even be sued in court. Now the truck got repoed and as the buyer the collection agenency is seeking me out. Am i responsible for the remainder of the loan?
1 Answer from Attorneys
Cosigner Responsibility for Loans in Default, Bankruptcy Options
Yes, cosigners are responsible for 100% of the balance, plus interests, costs and legal fees, for loans which have gone into default. However, they have the ability to sue the primary borrower in order to be reimbursed for what they are forced to pay. There is, however, both good news and bad news about bankruptcy options in this case; although the primary borrower can go bankruptcy and avoid reimbursing the cosigner, the cosigner also has options. That is, the cosigner can also declare bankruptcy and avoid paying the loan. These comments are not intended as legal advice for you unless you subsequently retain me.
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