Co Maker Notice

[reindeer]

I co-signed on my granddaughter's car note. She is 20 and not making payments. The credit union sent me a letter and not her ( they have made some calls to her) that the account is 36 days past due in the amount of $219.54 with balance of $4887.03 since 5/14/07. ... As of today the entire balance is due in full. To prevent legal action from taking place, you have ten days ...to pay in full.

I ask my granddaughter to sell the car. She did not. I ask her today if she would sell me the car for $4887.03. I would pay off the loan, sell the car, and take the loss or give her the money if I made any money which is doubtful. She refused.

Can the credit union take the money out of my IRA I have on deposit with them without my consent? Should I get a lawyer?

I am not on the title. Shouldn't the credit union try to repossess the car from her? Then, come after me if they don't get the full amount?

Can I try to repossess the car from her? Or, will there be too much legal work to be worth while.

needing help, thanks

 

[Vortex153]

As far as them reposssesing the car, it would have to be on the loan agreement as a security. If it's on the loan agreement, they will repo it and sell it at auction. You would be much better off selling the car on autotrader.com or e-bay, if you could get your granddaughter to agree. Convince her she would be in a much better situation if she sells it before they take it.

Regarding taking the money out of the IRA. I don't know if it varies from state to state, but I know in Michigan IRA accounts, social security benefits, workers compensation, veteran assistant benefits and a few others are exempt from garnishment.

In order for them to take any money from you, they must take it to court, win the settlement, then file a "Writ for Garnishment". They can either do periodical garnishments or non-periodical. Periodical would be where they take 25% of your paycheck until the balance is paid. Non-periodical would be where they take the money out of a checking account in a one time hit, up to the balance. But again IRA is exempt from this (at least in Michigan). I wouldn't worry about them taking any money without you knowing. You'll have a lot of notices from the court before it happens.

I wouldn't suggest taking the car from her yourself, it would probably be too much of a pain.

I think your best bet would be to talk to the bank, and work something out with them. If it's only 36 days late I'm sure if it was caught up to date they would be fine. In most cases banks would rather continue with the loan instead of going through the hassle of court and collection after court.

I'm not an attorney, just trying to help out. This information is to the best of my knowledge and could vary from state to state. Hope it helps.

 

[seniorjudge]

reindeer, the creditor will go after the maker with the deeper pockets.

That would be you.

You need to pay this off to protect your credit rating.

Then deal with the brat later.