Totaled a Car With No Insurance and Defaulted on Co-Signed Loan

icyurah8r · #1 01-17-2009, 12:30 PM

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

I had a co-signer on my last car loan which was through Car Max a little over a year ago. After having the car for about 5 months i let my insurance lapse and had an accident totalling the vehicle while uninsured. I didn't recieve a citation at the accident either.

I notified the bank, strangely they would not send one of their adjusters out to look at the damage nor would they come & scrap the car. So i parted it out & scrapped the car myself and just continued making my mothly payments on it but then quit a few months later due to being laid off from work & taking a huge paycut with my new job.

It's been about 6 months or so since i've made my last payment...i've had to save up for a new car & had also moved. What can happen next with my situation and worse case senario? What can happen with my co-signer? If i get sued and get a judgement can they garnish my wages or take my current car?

M'sta Mikey · #2 01-17-2009, 12:34 PM

Quoting icyurah8r

What can happen next with my situation and worse case senario? What can happen with my co-signer? If i get sued and get a judgement can they garnish my wages or take my current car?

Your co-signer is on the hook for the payments and yes, he/she can sue you. If they win a judgement against you, they can then proceed to garnish your wages, tax returns, bank accounts, place a lein on your personal property, etc (if you state allows garnishments and leins)

icyurah8r · #3 01-19-2009, 02:59 AM

Quoting M'sta Mikey

Your co-signer is on the hook for the payments and yes, he/she can sue you. If they win a judgement against you, they can then proceed to garnish your wages, tax returns, bank accounts, place a lein on your personal property, etc (if you state allows garnishments and leins)

Do you know if the state of TN allows garnishments or what the garnishment laws are here?

junker · #4 01-19-2009, 08:40 AM

are you concerned at all about the problems you have caused for your co signer? so far you seem just concerned about what can happen to YOU, whatever they can do to you, they can also do to your co signer.

M'sta Mikey · #5 01-19-2009, 09:04 AM

Quoting icyurah8r

Do you know if the state of TN allows garnishments or what the garnishment laws are here?

Yes it does, up to 25% of your earned income, not to mention the other remedies I listed.