Can you still sue someone for the balance or half the balance of a loan, if you have them removed from the loanand/or put yourself as the primary on it?

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Can you still sue someone for the balance or half the balance of a loan, if you have them removed from the loanand/or put yourself as the primary on it?

My ex and I have a loan taken out together. He is the primary on the loan, I am the co-signer. My car is the collateral. He hasn’t made payments for the last 2 years, but is claiming rights to my vehicle. I know the only way to remove those rights is to refinance, and remove him as the primary and take over solely. If I do so, can I still take him to court to sue for the balance of the loan to be split fairly?

Asked on July 12, 2011 under Bankruptcy Law, Arizona

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

When you say your "ex" do you mean former spouse or former boyfriend. If your "ex" is your former spouse, most likely there is a marital settlement agreement and order regarding the division of assets and liabilities of your marriage. Such an agreement would spell out what to do regarding the loan where your car is the collateral for the loan.

If your "ex" has made no payments on your presumed car loan for 2 years and the car is in your name as the registered owner, he cannot claim monies from you for that time period.

Whether you have a right to sue your "ex" for the presumed car loan is based upon what agreement if any you had with him for the car loan and its payments. If your car was collateral for some other loan for your "ex" where he was the main person obligated on the loan, and you made the payments on the loan to save your car which is the collateral, you can sue your "ex" for these payments under an oral or implied in fact agreement between you two.


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