If I cosigned for an auto loan and the person I signed for passed away, am I responsible for the loan if I turn the car in? 9 Answers as of April 15, 2014

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, as a co signor you are liable for the entire amount. If you turn it in, they will sell it at auction and you will be liable for the difference.
Answer Applies to: New York
Replied: 4/15/2014
Stephens Gourley & Bywater | David A. Stephens
If you cosigned you are responsible.
Answer Applies to: Nevada
Replied: 4/15/2014
Portland Bankruptcy Law Group
Portland Bankruptcy Law Group | Christopher J. Kane
If you surrender the car to the lender, the lender will sell the car and apply the proceeds of the sale to the loan balance. If the proceeds are not enough to pay off the loan in full, you will remain liable for that deficiency balance. If you file bankruptcy, you will be relieved of that liability.
Answer Applies to: Oregon
Replied: 4/15/2014
James T. Weiner & Associates, P.C.
James T. Weiner & Associates, P.C. | James T. Weiner
Yes you are responsible for the shortfall in the loan after the car is sold if all the money is not recouped.
Answer Applies to: Michigan
Replied: 4/15/2014
SmithMarco, P.C.
SmithMarco, P.C. | Larry P. Smith
Yes, co-signer means its just as much yours as the other persons. Once that other person is no longer in the picture, its all yours.
Answer Applies to: Illinois
Replied: 4/15/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    That will be depended upon the terms of the contract which you guaranteed or cosigned. The general answer is if the value of the car is less than the amount which remains outstanding you will be liable for the shortfall.
    Answer Applies to: Michigan
    Replied: 4/15/2014
    Stacy Joel Safion, Esq.
    Stacy Joel Safion, Esq. | Stacy Joel Safion
    Yes you are.
    Answer Applies to: California
    Replied: 4/15/2014
    Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
    Yes. They will sell the car at a low price at an auto auction and hold you liable for any deficiency (difference between the sales price and the debt.) If you have title to the car (e.g., it was held in joint tenancy with right of survivorship), check the value in one of the standard price guides, take it to a dealer and offer to sell it. Get a quote in writing. Send the quote to the finance company and ask them to release the title for payment in that amount. You are still liable for any deficiency, but you are likely to get more than it would bring at an auction. If the finance company refuses to release the title, they may have violated the law and either barred themselves from recovering a deficiency, given you a claim for statutory damages, or both.
    Answer Applies to: Illinois
    Replied: 4/15/2014
    Timothy Casey Theisen, P.A. | Tim Theisen
    Yes. That's why they had you co-sign.
    Answer Applies to: Minnesota
    Replied: 4/15/2014
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