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So, I was engaged to a girl a while back, and co-signed on a car loan with her. I ended up making several payments before we ended up breaking up. She paid for a couple months, but then stopped paying on the loan all together. The bank recently repossessed the vehicle. I have been in contact with the bank, as I have been doing business with them for years. And they’ve been really nice towards me. They understand that I’m not going to make payments on her car after we’ve broken up. But, nevertheless, it still affects my credit. The bank will sell the car and apply that to the loan. But whatever is left my ex, and I as a co-signer, are still responsible for.

Do I have any legal recourse against my ex for defaulting on the loan? Or is there a way I can get my name off the loan and disassociate myself from her all together? And if so, how much would something like that cost? Thanks.

10 Comments »

1. 

   These questions are best answered by your attorney.

   You have a contractual obligation to the bank. That obligation is enforceable. The bank has an obligation to the depositors and investors.

   You probably do not have a contract with your ex which would let you off the hook for this joint debt.

   A word of caution: If the bank has to take this matter to court, they may obtain a judgment against both of you jointly and severally. This could mean that they could recover all of the debt from either of you at their discretion.

   Call your attorney first thing tomorrow.

   Comment by LovesTheConstitution — January 6, 2010 @ 4:14 am

2. 

   once it has been repo’ed then you probably cant remove your name from the loan. i would let them auction the car, pay off the remaining balance and sue her for the money in civil court, small claims if under 5G (usually), but you will need proof of the debt and the agreement that says you are the cosigner.
   maybe the bank will work with you like this:
   they auction the car remove that amount from the balance, you pay them half the money owed and they go after her for the other half? that way you dont have to sue her. but get it in writing they will remove the negative mark off YOUR credit when it has been paid.

   good luck

   Comment by ? — January 6, 2010 @ 4:14 am

3. 

   no your stuck…NEVER sign for someone for anything..it always always comes back to bite you…your credit is already ruined so I would let them take the car and if you dont make the payments they will take the money out of your account as they did with my b/f…so either you have to make the payments and sue her in small claims court or change banks if you dont want them helping themselves to your payments every month…good luck with this ..it sucks.

   Comment by mystacall — January 6, 2010 @ 4:14 am

4. 

   You can do nothing to get your name off of the loan. Have you considered buying the car from the bank for the balance owed? You could then sell the car. If you don’t do that, you are responsible for the loan deficiency. You can sue your ex for the balance, but the bank will look to you first since they take the path of easiest resistance and the one with the deepest pockets. I’ll bet you have learned an expensive lesson.

   Comment by lcmcpa — January 6, 2010 @ 4:14 am

5. 

   I can’t answer on the legal recourse question

   There is no way you can get yourself off the loan unless the lender is willing to release you (unlikely in this or any other case)

   My advice to you would have been to pay off the loan prior to the repo if you did not want your credit effected – Now that it has been repo’ed I would just pay off the balance and take it as a life lesson

   And never co-sign for anyone again

   Comment by roadrunner426440 — January 6, 2010 @ 4:14 am

6. 

   You have no legal recourse except to pay the difference after the car has been resold. The bank will come after whom ever is on the loan and whom ever they can get to pay off the loan. You can’t get you name off the loan because you were a co signer. The bank’s next option is to file suit against you and your ex girlfriend to recover the money. And they will take out a judgment against you both to get the money. If they can’t get it from her they will get it from you. That’s when you will fall out of love with your bank. Your only recourse is to sue your ex girlfriend in civil court. Depending on the amount you may or may not need an attorney.

   Comment by Sherry C — January 6, 2010 @ 4:14 am

7. 

   No, you both owned the car. Best advice, never co-sign for anybody, even your children.

   Comment by Almond — January 6, 2010 @ 4:14 am

8. 

   You have some good answers here , plus the co-signer is the one who guarantees the loan will be paid , in this case that happins to be you .

   Comment by Robert F — January 6, 2010 @ 4:14 am

9. 

   jeff, I hate to have to tell you this but your screwed. And in a pretty big way. To start with the banks going to go after whoever can or will pay the balance due and believe me the balance is going to stagger you. They’re going to add legal, repo costs and storage to the balance of the loan. By law they’ll auction it off but at best it’ll go far below it’s true, normal wholesale value simply because by the time it gets to an auction block it’ll have been towed, very poorly handled, possibly even damaged, ransacked or have parts removed and not cleaned and dirty.
   If you don’t pay they’ll ruin your credit, get a judgement and they’ll just sit back and wait until either or both of you come into money and they’ll be there with their hands out and if the amount you end up owing after the auction is staggering wait until you see the amount a few years of a judgement collecting an absorbitent amount of interest will cost you.
   About the only legal recourse you can give a try is sueing your ex, but the chances of your winning and than collecting are slim to none. The banks will never let you off the hook, especially now that you both defaulted on the loan, which by the way is now and has from the time you co signed, basically your loan. Depend on their coming after you. It’s only hers if she pays. And if you do go to court, even if you win it’ll be almost impossible to collect and if niether of you pay your credit will be shot no matter what. The other thing is if you everr want to finance a car, the meer fact your credited with a repo will kill any hope of that happening. Loan companys will tolerate just about anything but a bankrupsy or a repo. No s_ _ t,..A credit company would be more forgiving of your shooting their rep guy than your cars being repossed.
   Sorry to have to tell you this.

   Comment by thomnjo2 — January 6, 2010 @ 4:14 am

10. 

    . Your options are few and they are all bad. Get the car. Right now. At least you get something in return for owing all that money to the lender.

    Comment by Ed Atun — January 6, 2010 @ 4:14 am

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