Legal Question in Credit and Debt Law in Georgia
I just finished bankruptcy, my car was included but a company had bought the loan right before I entered now they want to go after my wife who was co-signer on auto but not on the bankruptcy. The interest rate was lowered to 4 percent but they want the original 11 percent over these 5 years that I completed the bankruptcy plan. That's about $6,500 they want from my wife, even though they only had the loan about 3months before the bankruptcy started. Can they legally do that and what are my options?
2 Answers from Attorneys
Maybe, and I am sure your bankruptcy lawyer discussed that with you 5 years ago.
Yep. They can do that because your wife was a co-signer! Never ever be a co-signer for anyone and if you needed a co-signer it meant that your credit was crappy. Now its even crappier because of the bankruptcy.
Being a co-signer means that you tell the lender "go ahead and make the loan because if the borrower does not pay, I will pay." And so your wife must now pay everything that you did not pay in the bankruptcy.
So your wife has a decision to make - either she needed to file bankruptcy too or you will have to pay for the car.
I would try and get a loan at a much lower interest rate and get the car paid off and then repay the loan.
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