I co-signed my son’s car that the bank repossessed- can the bank go after me?
If a Debtor co-signed a debt such as a car loan for their son and the son cannot make the payments, the bank will generally repossess the car and sell it at auction.
Because the car will not sell for as much as what the son owes on the debt, the bank will have a deficiency judgment for the difference between what is owed and for what the car sold.
If the son does not pay the deficiency, the bank can go after the Debtor for payment because the Debtor co-signed the loan.
A Chapter 7 or a Chapter 13 bankruptcy can stop the bank from going after the Debtor for payment. Consult with a bankruptcy lawyer to see which Chapter is better for you. The Law Offices of Alice Vacek Aranda PLLC offers a free one half hour consultation.
