Expert: Ontrack Financial Group llc - 11/5/2008

Question
I purchased an incredibly over priced car 16 months ago.  A friend signed as buyer (just after filing for bankruptcy) and myself as co-buyer because of my bad credit.  I've not received a bill for 10 months although they finance company says they are sending them to my address.  Here I am in serious financial trouble, I need to get rid of the car that I owe $12,000 more on than it is worth.  My friend (co-buyer) is a singe mom, very low income...was not even aware of her role as she was lied to at the dealership (blatently).  How do I get out from under this debt and not hurt my friend financially?  We are both sick over this.  My car payments and insurance are very high and prevent me from renting a place to live.

Answer
Dear RB,

Thank you for the question.

You're not alone, many vehical loans are upside down it's the current finance trend.  To make matters worse the lender gave you a large interest rate.  

Depening on the way the title reads you may not be a title holder, but only a cosigner.  Please check the title and confirm with the mvd.  Since your friend already filed bankruptcy she won't have protection from courts for 6 years.  This can place her into a larger bind than her previous situation.  The lender knows she is no longer judgment proof.    

This situation may have little wiggle room.  You can research unfair practice under your states ucc laws and attempt to locate case law under this topic.  The next step would be to look at the decision by the court that may have set a presidence on a matter like this one.


What changed in your situation that you can no longer afford the car payments?

Mike Moore

Ontrack Financial Group llc

https://www.OntrackFinancialGroup.com/contactus.html