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Debt From Car Included In A Cosigner's Bankruptcy

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  • 06-11-2007, 10:05 AM
    astanley_00
    Debt From Car Included In A Cosigner's Bankruptcy
    My father co-signed on a car for me in 2001. By September of 2002 he filed bankruptcy. I contacted the bank and advised them that I had every intention of paying for the car. I had never missed or been late on a payment. I was told by the bank that because my dad was the co-signer, I would have to give the car back. I argued this with them, but they insisted. I made arrangements to hand over the car in October of 2002. I never heard anything else about the car until last October (2006). A person from a law firm representing the bank called and said that I owed $3,000 for the car. I asked that they send me paperwork showing me this and most importantly just to verify who they were. I also sent a letter to the address they gave me. I didn't hear anything else about it. Last week, I was served with court papers from another law firm stating that I owe $10,000 for the car. Paperwork included with the lawsuit claim that I said I didn't want the vehicle, didn't wish to be present at the auction, and hadn't made payments on it since January of 2002. My signature is not on any of these items. I didn't want to loose the car. I wanted to keep it. Is there anything I can do about this? Any help is greatly appreciated. Thanks!
  • 06-11-2007, 06:28 PM
    jk
    Re: Debt From Car Included In A Cosigner's Bankruptcy
    was there a statement requesting you post your state when you started this thread?

    that would be pertinent info.
  • 06-11-2007, 08:51 PM
    Mr. Knowitall
    Re: Debt From Car Included In A Cosigner's Bankruptcy
    The loan contract may have had a clause triggering default if the cosigner went bankrupt. If that's the case and you didn't at that time have enough credit to qualify for a loan without a cosigner, and couldn't pay it off, it wouldn't be a surprise that they wanted the car back.

    When you default on a loan for a car and it is either repo'ed or returned, they sell it and come after you for any deficiency. That's what they're doing.

    Your state is relevant, as whether or not there is a statute of limitations defense depends on state law.
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