Do I have any legal rights to compel my son-in-law to makea car payment on a loan that I took out on his behalf?

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Do I have any legal rights to compel my son-in-law to makea car payment on a loan that I took out on his behalf?

I signed for a car for my daughter and son-in-law 9 months ago. My agreement was with him, as he is the only one who has worked in 9 years. She is a stay-at-home mom. They are now going through a divorce and he refuses to make the car payment. All of the payments have been made by me with the money I paid them for rent, except for 1 or 2 payments, which he made directly from his own account. He tried to evict me but my daughter asked me to stay, so I am still living here, rent-free. I have been unemployed for 2.5 years and can no longer afford to make these payments.

Asked on July 21, 2011 Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Under court decisions in this country you have a legal argument that the loan that youtook out in your son-in-law's name was for his benefit where he was to make the payments at all times if in fact that was the case. Was it?

The rental payments you made which went to make the car payments by your daughter and husband were payments by them for the vehicle. You did not make a gift of making the car payments directly to your son-in-law.

If you end up getting sued for delinquent car payments and a judgment is entered against you because you signed the loan for him, he would be obligated to re-pay you the amount owed. Potebtially under community property laws of the State you live in, your daughter likewise could be responsible to you for any judgment entered against you.

Hopefully the payments for the car remain current to avoid a collection action and further family disharmony.

Good luck.

 


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