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Co-signing drama

Last year I co-signed for my sister on a Lexus after the loan agent told me that I could refinance in 3 months. Needless to say, that never happened. My sister moved out of town and now my phone is ringing 10 times a day for payment. She really can't afford the pay and I can't either. I told her to consider bankruptcy and my mom said that I was being hateful and selfish. What can I do?

Answer Question
 
Anonymous

Asked by Anonymous at 8:20 PM on Jul. 11, 2010 in Money & Work

Answers (10)
  • Have them repo the car.
    itsallabtthem84

    Answer by itsallabtthem84 at 8:21 PM on Jul. 11, 2010

  • Whatever happens, your credit has been severely damaged.
    rkoloms

    Answer by rkoloms at 8:26 PM on Jul. 11, 2010

  • Yup, I'd give them her address and tell them to go get the car.
    DesertRose75

    Answer by DesertRose75 at 8:26 PM on Jul. 11, 2010

  • Then I'd never do it again.
    DesertRose75

    Answer by DesertRose75 at 8:27 PM on Jul. 11, 2010

  • Even if she files for bankruptcy you are still on the hook. It won't help you. Sorry.

    maxswolfsuit

    Answer by maxswolfsuit at 8:32 PM on Jul. 11, 2010

  • Honestly speaking, if your sister files bankruptcy it will not help you in the least. The late payments have already damaged your credit to some extent. If I were you, I would first decide if I could afford the payments at all. If I could, I would make them long enough to sell the car for payoff. If I couldn't, I would talk to my sister, and tell her since neither of us could afford to pay it, then we were going to have to either take it back to the dealer, or let them come repo it.
    mommy11260

    Answer by mommy11260 at 8:37 PM on Jul. 11, 2010

  • Bankruptcy will only release your sister's obligation on the car note, not yours. You need to talk to your sister and start making payments. Call the lender and see what the deal is as well.
    LittleD96

    Answer by LittleD96 at 9:58 PM on Jul. 11, 2010

  • Please let this be a lesson learned NEVER co-sign a loan for anyone! Your sister can claim bankruptcy, but that doesn't release YOU from the obligation, they will just come after you full force. Sell the car and pay off the remainder of what is owed on it and never ever put your name on someone else's debt again. Also letting the bank repo it doesn't release you from the responsibility either. They will sell it at auction for a tiny fraction of what is owed on it and sue the two of you for the balance.
    slw123

    Answer by slw123 at 8:04 AM on Jul. 12, 2010

  • It's a shame that someone you helped has such little regard for you. It always fells like a double "Screw You" when it's someone we love. Remember the eleventh commandment, thou shalt not co-sign.
    wellnessgirl

    Answer by wellnessgirl at 1:50 PM on Jul. 12, 2010

  • Never co-sign for anyone. If the bank won't approve them, then they probably have a good reason for it.
    sherribeare

    Answer by sherribeare at 4:25 AM on Jul. 15, 2010

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