Expert: Terry Leeders - 3/4/2010

Question
I filed for bankruptcy and was discharged in 2006.  my car  discharged in the bankruptcy had a cosigner on the loan.  Just this past month Feb 2010, the car company has sent a judgement against the cosigner for the car.  In the past 5 years the car company Ford Motors has never asked the cosigner for payment.  Also this car was repossessed by Ford and sold over five years ago.  My cosigner does not have the $3,000 Ford suddenly wants, and I would like to know how to proceed to help him fight this judgement.  He is a honest person, and thought, as well a myself that this was resolved with the discharge and with Ford selling the car.

Answer
Since cosigners are equally responsible for payments, Ford can properly collect from them for the balance. Statutes of limitations can be from 5-10 years depending on the type of debt. Therefore they can properly collect from your cosigner for the deficiency balance.