I am a cosigner in a personal loan and we have a car as collateral she wants to turn in the car because she cannot pay any longer, If they sell the car for less than what the loan is for will I be held responsible being that the original loan holder is filing bankruptcy? And can they garnish my paycheck?
2 Answers from Attorneys
Yes, you will alwyays be liable for the loan, even if the co-debtor files bankruptcy. And your wages can be garnished once the lender gets a judgement.
El Cajon Bankruptcy Lawyer You do have a legal liability as a co-signor.
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