My question involves an auto loan or repossession in the State of: WA
My cousin (27 yrs at time of purchase) bought a used 2000 model year car in 2005. Her father (57 at time of purchase) co-signed the loan. It is a 6 year loan. The cosigner died in 2006. Three weeks ago, my cousin nearly drowned and is now in a permanent vegetative state (breathing/feeding tubes, no expected recovery) and will remain in hospital care for the remainder of her life. Based on their ages - obviously the loan does not qualify for peace of mind.
We called the Credit Union that financed the car to find out what to do. They stated that $11,000 (eleven thousand) is still owed, and that her mother/co-signers wife must continue payments or risk her (the mother's) assets being garnished/seized to pay the balance.
We will not be able to sell or transfer equity on the car as no one will be willing to take over this high balance. The car is at best worth one or two thousand dollars and probably less at auction. We will gladly voluntary surrender the vehicle but are concerned a) on the high expected deficiency balance and b) credit ramifications to the mother/spouse.
Can a company gain judgement on assets or wages of a co-signers spouse when both the buyer and co-signer are incapacitated/deceased?

