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  1. #1
    Join Date
    Sep 2016
    Posts
    13,916

    Default Liability of a Parent Who Cosigned for an Auto Loan

    A parent cosigned for an adult child's auto loan. The child has stopped making payments. The parent's only income is from a small pension and Social Security retirement. Can a lender go after that income if the child defaults?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Liability of a Parent Who Cosigned for an Auto Loan

    Another lesson in why it's a bad idea to be a cosigner.

    A car loan lender is not going to be able to reach pension benefits or Social Security retirement benefits, as they are exempt from garnishment. There may be other assets, however, that a credit could reach. Read this.

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