Expert: Terry Leeders - 10/26/2008

Question
shortly after purchasing a car i becamed disabled and couldnt pay for it. I asked them if could return it they said if i gave the car back to them i would still have to pay for it. I had disability insurance but the doctors wouldnt sign the documents b/c i was "too young to be disabled" so i wasnt able to claim disaility. Would the co-signer be covered under the disability insurance? The co-signer tried to claim the disability insurance and was told that she couldnt by the car people.

they ended up repossing the car. we were taken to court and sued for more than the car was even worth. then years later after finally finding a job that i could do with a disability.  my wages were garnished but still couldnt pay off the debt (b/c interest ate up whatever i payed for) i ended up filed chapter 7 bankruptcy. my mom (the co-signer) who is disabled and on disability cant afford to pay for it. this is in collections with Kramer & Frank Law firm and they wrote a letter saying she will be arrested in 6 days if she does not come up with $4500+ dollars. can they do that to her? Do we have any rights?

Answer
Your mom is responsible for the debt now that you filed.  Normally they cannot send her to jail for not paying the debt, only if she missed a court date or something.  They can sue her, garnish wages, freeze bank accts etc.  Mom will need to make payment arrangements with the lender, or else file bankruptcy too.