co-signed for a car

September 4th, 2008 by Questions

hi, 2 1/2 years ago i co-signed for a car loan. the person is no longer making his car payments. my husband and i bought a condo 6 months. i am a stay at home mom, and cannot afford to make the payments. the car i cosigned for was totaled in a car crash and he didn`t have insurance. there is still another 2 1/2 years left on the loan. the car company is calling me asking for the payments. i have had great credit and don`t want to don`t how much damage this has done i it. there is still $11,500 left to pay

Posted from: Ontario


One Response to “co-signed for a car”

, A licensed trustee said:

Unfortunately when you co-signed for the loan you agreed to make these payments if the borrower was unable/unwilling to do so. This is a debt you need to deal with somehow.

Since you have no income one strategy may be to simply ignore the debt – if you do this be aware that the lender may take you to Court in order to obtain a Judgment against you. The Judgment could be used in the future if/when you have income or it could be registered with the Sheriff (which means it would be paid when/if you sell your condo).

You may want to see if the lender will accept some sort of settlement (partial payment) on the debt. Alternatively, you may want to see if yiou can pressure the borrower into paying.

Sorry, but in my opinion, co-signing for anyone else is a very bad idea – if they don’t/can’t pay you’re stuck with the debt.

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