If I signed a car loan for a friend but the car was repossessed because they stopped making payments, canI sue them?

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If I signed a car loan for a friend but the car was repossessed because they stopped making payments, canI sue them?

A car was bought under my name for another person car got repossessed. Can I sue that person for non-payment and bad credit. We never signed a written contract or any agreements.

Asked on November 14, 2011 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you signed a loan for a friend to buy a car, the car was repossessed because payments were not being made and if you are sued and a resulting judgment results against you when moneys are levied upon by the judgment creditor as to you, then you have a factual and legal basis for suing your friend.

The reason is that even though you may end up with bad credit as a result, how do you value the bad credit in terms of dollars and cents? If you actually lost money due to a levy or garnishment for a loan you co-signed, then you have actual damages for the amount taken. Your theory of recovery against the friend would be upon common counts and an implied contract.


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