I co-signed for a car for my son. He wasn’t able to make the payments anymore because the engine blew up on the car. I know I’m responsible as a co-signer and all I can afford to do at this time is to turn it back into them.
Is there any protection besides Bankruptcy from the amount I’ll owe after auction and the new engine? Will they go after my 20 yr. old son for the money even if we go bankrupt?
As a co-sgner you have all the financial responsibilities as the borrower but no stake in the asset being financed.
If you do go bankrupt to stop the big bill that will land in your lap following the public auction of the car, they will go after your son for the balance due. He is just as liable as you are for the debt.
Outside of you coming to an agreement to pay the lender back in full for the balance that will be due, bankruptcy is your only form of protection.
I know you were just trying to help him out and do a good thing by cosigning for the car but here is the advice I give everybody. Never cosign for anything, ever.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.