people's Lawyer


Co-signing is dangerous

Question I bought a car and could not afford the payments. I agreed to do a voluntary rep ossession. Now they are telling my father that he owes over $3,000 as a co-signe r. Is this legal?
Answer If someone signs as a co-signer, he basically assumes the same responsibility as the person he signed for. In other words, if you owe the money, your father als o owes the money. After a repossession, voluntary or involuntary, the car is sol d and the amount obtained at the sale is applied to the debt. If there is still a balance remaining, called a deficiency, you still owe the creditor. For exampl e, if you owed $12,000 and the car was sold for $9,000, you would still owe the $3,000 deficiency. Because you owe the money, anyone who co-signed also owes it. I suggest you ask for an accounting of how much was owed and how much was obtai ned at the sale to determine if there is really a deficiency owed. If there is y ou and your father are both responsible.