Check out some similar questions!

dmbfiend · Jun 2, 2009, 02:29 PM

I was asked to co sign on Daughters car even though I only worked 24 hours a week. So I went in and they had me sign on the "buyer" signature line. I asked the guy about it and he said that it did not matter. Anyway she defaulted on the car and it was repoed. They have not even contacted her about paying it and a judgment went against ME the other day even though I told the judge that the company I worked for shut its doors in March and I cannot even get a job at McDonalds. I received a letter today stating there was no just reason for the delay of payment... I know he looked like he was 90 years old but "DID YOU NOT HEAR ME"? I cannot draw unemployment, I am about to lose my home. I now have NO income and raising 3 children on my own. My question is If my daughter "THE CO SIGNER files Bankruptcy will this relieve me of the car debt or no?

Thanks for the help

Dang forgot another question... Will the collection agency (Law firm) be able to tell when I am back to work. The reason I ask is that when I get another job I need to make a decision either to pay my mortgage debt or some car that was not mine to begin with.

Psychic1 · Jun 3, 2009, 10:03 AM

Well let's answer your first question- the answer is no, because she is the secondary if they can't get it from you they will get it from her. They will sue both of you. But first you because you're the primary on the loan and I'm sure the dealer new that. The kind of trick you. They knew that she wouldn't get the loan so they put you first on the application, but she would've ended up getting credit out of it had she paid off the car.
Now for your second question- the answer is yes, they will find you through your Social Security number because you have to put that down when you get a job. And once they file a judgment against you and find out where you working they will serve the sheriff in your town with the judgment and they have no choice but to take it out of your check but the most they can take out out of each paycheck is 10%. So it's basically $10 on 100 for every hundred. If you make $400 a week you will pay $40 toward the judgment for the mortgage.that's why it's sometimes better to deal with the company yourself and work out a payment arrangement before it turns into a judgment because not only will it pop up on your credit report and damage your credit you will have no choice but to pay it every week. Because they will garnish your check for the amount owed, until its paid off in full.whereas if you work out a payment arrangement and you couldn't make the payment within a certain month you can ask for an extension from the company direct without getting penalized for it.

I said 10% is the most they could garnish because that's what it is in NYState, I don't know where your from maybe you want to check that out, but the most is 10% in NY, unless its like child support which is like 17% of your check.

JudyKayTee · Jun 3, 2009, 12:29 PM

It's 10% of GROSS income in NY, not net income, a common mistake.

Child support in NY is 17% of there is ONE child. It's more if there are two or more children.

ScottGem · Jun 3, 2009, 12:55 PM

First, it does not matter whether you signed as buyer or co-signer. The creditor has equal rights to go after either signator or both. A co signer is an equal borrower.

Second, inability to pay is not a valid defense. That's what the judge meant by "no just reason".

Finally, the judgement will last for 14 to 20 years (7-10 with at least one renewal). It depends on how conscientious the creditor is about checking for new employment or not.