Question for the Money Doctors
Question submitted on Feb 23, 2020.
QuestionMy friend co-signed for a car loan for his son. $11000 total for the car. His son unfortunately passed away not too long after taking delivery. Twelve years go by and my friend gets notified that he now owes a total of over $34000. I want to know if this is a legal process of debt collection?
When you co-sign a loan, you are liable on that loan. Do they still have the car? If they no longer have the car, please send the bank a copy of the death certificate. If they still have the car, offer to give it back to pay off the loan. They should not ignore this, they should contact the bank to get this resolved. The bank may forgive the loan. However, if it has gone to a collection agency, their options may be limited. Then I would contact an attorney to help on this case.
For additional information visit //www.360financialliteracy.org/