Elderly Co-Signer on Auto that was Reposessed and Sold

[citymagick]

My question involves an auto loan or repossession in the State of: IL

My dad signed on a loan (2004). Loan was defaulted on, and car was repossessed and sold at auction. Person who held the loan declared Chapter 7 bankruptcy (2006). Dad just received notice that he's in arrears for car loan (11k+). Can the creditor do this? My dad is 77, works part-time at Home Depot to supplement his SS check and doesn't have a pot to *** in...any chance we can get out of this?

Really appreciate the help...feeling a little desperate...

[citymagick]

So, as a follow-up, here's what I've learned:

1. Loan was co-signed in 2004.
2. Car was repossessed and sold at auction in October, 2005.
3. Person who took out loan declared Chapter 7 bankruptcy, which was complete in November, 2006.
4. According to lender (CitiFinancial), balance of loan, plus interest accrued since November, 2006 is due by co-signer ($11k+). Options: "settle" for $6k in cash now, make payments totaling $11k+ or declare Chapter 7 bankruptcy (with no guarantee that court will agree to terms) - all this with full knowledge the co-signer is a senior citizen on fixed income with no assets!!

I saw somewhere else on the board that there is absolutely NO protection for people who co-sign on loans, regardless of their state of mind at the time they sign and/or their financial situation. It makes me sick to my stomach to think that my dad (and lots of elderly people like him) will never be able to resolve this situation...and he's said that he'd rather die than pay this company money.

[Mr. Knowitall]

The whole point of cosigning a loan is that you're stating that you'll pay off the loan if the named borrower defaults.

[RedT]

So, as a follow-up, here's what I've learned:

1. Loan was co-signed in 2004.
2. Car was repossessed and sold at auction in October, 2005.
3. Person who took out loan declared Chapter 7 bankruptcy, which was complete in November, 2006.
4. According to lender (CitiFinancial), balance of loan, plus interest accrued since November, 2006 is due by co-signer ($11k+). Options: "settle" for $6k in cash now, make payments totaling $11k+ or declare Chapter 7 bankruptcy (with no guarantee that court will agree to terms) - all this with full knowledge the co-signer is a senior citizen on fixed income with no assets!!

I saw somewhere else on the board that there is absolutely NO protection for people who co-sign on loans, regardless of their state of mind at the time they sign and/or their financial situation. It makes me sick to my stomach to think that my dad (and lots of elderly people like him) will never be able to resolve this situation...and he's said that he'd rather die than pay this company money.

If your dad is in as bad a shape financially as you indicate he is judgment proof (you can't get blood from a stone).

So anything CitiBank does will be for naught, unless there is some kind of estate they can attach after he dies.

[Betty3]

I'm afraid your dad is on the hook here for the loan. He co-signed to be responsible for the loan if the "original" borrower defaulted on the loan.

However; if the creditor would sue your dad for the loan & get a judgment against him & he has no assets, there will be nothing for the creditor to collect from (seize). (unless he possibly comes into some assets in the future or his estate has assets to collect from at his death)

The SOL on a judgment in Il. is 20 years.