What is the co signee responsibility after bankruptcy has been filed? 13 Answers as of February 14, 2011

My grandmother bought a car for me and I co signed it. I left for boot camp when she filed bankruptcy afterward and the bank repossessed the car. I did not get a notice until today which is 3 years from then that I have to pay off $10,000. Do I have a legal defense on this case or can I fight it?

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
When your grandmother filed bk she got herself out of the liability for the car note that left you still liable. When the car got repossessed the company must conduct a sale and get a reasonable price. Then they can sue you for the deficiency. You can pay $10,000. negotiate a better deal or file bk yourself.
Answer Applies to: Tennessee
Replied: 2/3/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
What would your defense be? Are you claiming you did not co-sign for the note? Based on your facts it sure sounds to me like you're liable for the debt.
Answer Applies to: California
Replied: 2/3/2011
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
Since you co-signed on the car loan and the other party filed bankruptcy, the bank can look to you to pay the deficiency claim which amounts to $10,000.00.
Answer Applies to: Florida
Replied: 2/3/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
As the cosigner on the loan, yes you are responsible for the debt. In California the statute of limitations on that is 4 years, so yes they can go after you. That is why lenders ask for cosigners, so they have a second person to go after. I never recommend cosigning for someones debt unless you are prepared to pay for it.
Answer Applies to: California
Replied: 2/3/2011
Law Office of Larry Webb
Law Office of Larry Webb | Larry Webb
As the co-debtor, you remain fully liable for the debt. You may have an issue re notice. This is a state law collection issue, not a bankruptcy issue unless you intend to file bankruptcy. If you file bankruptcy the deficiency should be discharged.
Answer Applies to: California
Replied: 2/3/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    No defense. You so-signed so you are liable for the deficiency.
    Answer Applies to: California
    Replied: 2/3/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    You might but you should consult with an attorney to see what the best options are for you.
    Answer Applies to: New Hampshire
    Replied: 2/3/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    The vehicle was repossessed because the bank was not paid. If your name was on title and the loan then you were a co-debtor and co-owner. If you only agreed to pay if your grandmother would not pay then you were a co-signer only. Either way you are liable for what is still owed. The fact that you just became aware of the debt does not matter. You probably did know the bank repossessed the vehicle. You just did not think they were going to come after you after so long. After 4 years you have the defense of the statute of limitations. However, if you have been outside the state part of the time the 4 years limitation is extended. If you are served with a summons and complaint you need to see an lawyer. You might want to see a bankruptcy lawyer, particularly if you have other debt outstanding.
    Answer Applies to: California
    Replied: 2/2/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Cosigners are liable for the debts that they cosign for. This is true even if the person that you cosigned for files bankruptcy. In that case, you are left as the only one still responsible to pay the debt. You can try to settle the debt for less or defend a lawsuit, but in the end, if you cosigned for a debt and you do not file bankruptcy yourself, you will be held responsible for the debt.
    Answer Applies to: California
    Replied: 2/2/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Co-signer is legally obligated to pay the debt. You may want to research the statute of limitations on the collection of old debt for your state. Contact a Consumer Debt Collection attorney to see if you have a claim against this Creditor.
    Answer Applies to: California
    Replied: 2/2/2011
    The Pedigo Law Corporation
    The Pedigo Law Corporation | Brian T. Pedigo, Esq.
    You may have several defenses. I handle consumer debt defense cases.
    Answer Applies to: California
    Replied: 2/2/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    If you signed the contract and your grandmother filed BK, you are stuck with the debt. You may have a statute of limitations defense, but you'll have to defend against a lawsuit in court (if the creditor files one). You can file BK and get rid of the debt yourself, but for all intents and purposes, that debt is still alive against you. Thank you,
    Answer Applies to: California
    Replied: 2/2/2011
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