Legal Question in Credit and Debt Law in Maryland
Help a co-signer
I co signed for someone who I thought was honest and financally stable for a 2004 Trail Blazer. This mistake was made in Sept 2006, He has made 1 payment on the automobile and bounced a check and has stopped paying they are now calling me trying to collect. He is now offering to sell the SUV back to car max. He owes$21,000.00 on the SUV and they are offering to buy it back for 16,000.00 and we would be liable for the balance roughly 5,000.00, he said he does not have any money and they want the balance in full upon return of the SUV.Please advise
1 Answer from Attorneys
Re: Help a co-signer
Yep, ou got it right when you said that the "MISTAKE" was made ...
You made an error in judgment if you co-signed for someone else's automobile loan. You are now liable to pay it. Having said that, if you don't have the money to pay the lump sum of $5,000.00 to settle up, you could theoretically at least take over the payments and "buy" the car from your friend, and try to sell or trade it yourself for something closer to full value (though my guess is that if he only made one payment, you are going to be lucky if all you owe is $5,000.00).
naturally, you can go after your friend for the $5,000.00 if you want. You can sue him for $5,000.00 in small claims court in the district court and probably do so without an attorney. once you get a judgment, you can garnish his wages etc.
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