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Lucy, Esq.
Lucy, Esq., Attorney
Category: Legal
Satisfied Customers: 27663
Experience:  Lawyer
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I am a co-signer of a car, the main person on the car

Customer Question

I am a co-signer of a car, the main person on the car totalled the car and stopped making payments, I was unaware since I was in college and moved back home to where this had happened. 3 years pass and I get a letter stating to pay the present balance or come to a settlement, I'm asking is there anyways to pay the settlement in payments as I was unaware of the situation and have heavy student loan on my part. Company said no and I'm just looking looking for help, my credit was ruined cause of this cant get a loan.
Submitted: 1 year ago.
Category: Legal
Expert:  Lucy, Esq. replied 1 year ago.

Hi,

I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.

The company that you're negotiating with unfortunately does not have to accept payments in installments. However, they will sometimes accept SIGNIFICANTLY less than the total owed if you can come up with cash upfront. That might be worth looking into, if you can scrape any money together (because they don't really want to have to sue you).

As a practical matter, if they get a judgment, they won't be able to collect it all at once unless you have the money lying around. They'll be stuck garnishing your wages and getting monthly or biweekly payments. They'd get 25% of your post-tax earnings. So you can trying pointing that out to them and seeing if they're willing to accept payments now in exchange for saving the time and expense of going to court, considering that you do not have the cash and they won't get full payment even if they sue you.

You also have the option of suing the other signer for any monies that you wind up having to pay because they stopped paying, if the agreement was that you would cosign and not have to pay anything. But you may also have to settle for collecting your money slowly over time.

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