Repossession
Debt and Bankruptcy
Co-signing

What happens to the co-signer if a car is repossessed?

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2016-08-06 17:19:25
2016-08-06 17:19:25

The debt and repossession will become part of the co-signor's credit record.

The co-signer of any loan has the same financial obligations and liabilities as the primary borrower. They can be sued and have their wages garnished or bank account frozen. The co-signor has the same responsibilities as the signor. Since the cosigner generally has a better financial situation than the borrower, debt collectors tend to target the cosigner with aggressive debt collection strategies. This can include frequent telephone calls, letters, threats of legal action and damaging the cosigner's credit report as well as the borrower's.

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Related Questions


You will also be liable for any deficiency balance

Yes. If you signed the loan, you are still legally responsible for it.

if i get my car repossessed, can they put a llien on the house?

When you cosign for anyone you are taking 100% responsibility for the payments on that car. If the person that gets the car doesn't keep their payments up it will be repossessed by the bank with an option for the cosigner to take over payments or sell the car and pay back the loan. Marcy

you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.

Yes. That is the point of the lender asking for a cosigner. The cosigner will have a repossession showing on their credit as well as the primary lender.

In the State of Texas, the answer would be "YES" as both parties signed for the car loan and both are responsible for the balance due. I was the primary signor but the cosigner had the car and was making the payments. Then she stopped making payments after owning the car for 3 years and the car was repossessed.

You end up with HORRIBLE credit if you don't pay your bills and you let your possessions get repossessed.

Normally your credit is ruined for 7 years.

If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.

Seems pointless to even consider. If the primary signer didn't have enough funds to make the car payments, they probably will not have enough funds to pay any lawsuit you charge them with. Fact is, if the primary signer defaulted on payments, then the cosigner would be responsible for making them - If repossession occured, then it was due to the fault of the cosigner .. can't sue yourself.

then you go and kick that person and repposses that car.... They call cops and you ignore those guys....

Your car was probably repossessed by the lender who owns the car until you pay for it. Call your lender and they will be able to tell you how to locate your repossessed car.

No, the cosigner will not have rights to the car after its paid off because the purpose of a cosigner is to pay off the notice if you fail to do so. Being a cosigner does not give them to any rights to the car.

NO...NO...AND...NO.Dont let this person scare you there blowing hot air keep your payments current and dont worry about it and if this person touches your car in the wrong way call the law.

No, a car can not be repossessed due to having no registration. A car can be repossessed for non payment. The police can have a car towed to an impound lot if there is no registration.

No, but your car can be repossessed if you don't make the payments.

Unless you contact the bank and work out a solution, they will sell the car. You will then be liable for the difference in what the car sells for and the balance on the note.

If you are late on your loan payment and are a cosigner on your daughters car can they repposses the car?

They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.

Yes: Your spouse/children can be included on your insurance policy regardless of who was/if there was a cosigner on the car.

The car will most likely be repossessed unless you make up the missing payments and penalties.


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