What to do if I co-signed for a truck and my ex was the primary account holder but ultimately did not pay?

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What to do if I co-signed for a truck and my ex was the primary account holder but ultimately did not pay?

The truck was repossessed and now we are both being sued. Is there any way I can get out of this? He is assuming all responsibility. If I get a notarized letter from him stating he is willing to pay everything back and assuming all responsibility do I have a chance of removing myself from this situation? What are my options?

Asked on January 22, 2013 under Bankruptcy Law, New Jersey

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You cannot get out of this with a simple notarized letter because you contractually obligated yourself to the lender when you co-signed.  You would need to negotiate a settlement and hope your ex pays it off and in exchange, the letter from your ex and the settlement dismissing you with prejudice from the suit would be sufficient to make this go away and fix your credit report because this will undoubtedly be on your credit report.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The problem for you is that under the laws of all states in this country you are responsible for any deficiency judgment due to the fact that you co-signed for the vehicle which was repossessed.

I suggest that you, your "ex", and the attorney for the lender sit down at a mediation to discuss the situation where the "ex" and you agree to the amount owed but the "ex" is required to make monthly payments to pay down the debt and you are not unless the "ex" fails to do so.


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