I co-signed for a now totaled motorcycle

[j_diddy]

I live in Ohio. I have found a lot of info on similar cases but none that were the same circumstances as this so any help with this is greatly appreciated

I co-signed for a friend to get a motorcycle in 2004. A few months later he totaled it. When the insurance company paid their portion (I wish I knew what gap coverage was at the time) it paid the account ahead but left a remaining balance of about $4,000 on the account. The payments are scheduled to start again this December. The questions that I have about this are if he does not pay the next scheduled payment and I need to pay it can I pay the full balance and fees and then collect that from him in court or can I only make the minimum payments? If only the minimum payments can the court order him to pay the payments or would I need to pay the scheduled payments and then collect the money from him at the end of the term? Also, fortunately I have never had to take anyone to court before, if I can pay the full balance and collect that from him how is the judgement paid to me? Do they set some type of payment plan for him? Just curious...

Thanks for any and all help!

 

[moburkes]

I live in Ohio. I have found a lot of info on similar cases but none that were the same circumstances as this so any help with this is greatly appreciated

I co-signed for a friend to get a motorcycle in 2004. A few months later he totaled it. When the insurance company paid their portion (I wish I knew what gap coverage was at the time) it paid the account ahead but left a remaining balance of about $4,000 on the account. The payments are scheduled to start again this December. The questions that I have about this are if he does not pay the next scheduled payment and I need to pay it can I pay the full balance and fees and then collect that from him in court or can I only make the minimum payments? If only the minimum payments can the court order him to pay the payments or would I need to pay the scheduled payments and then collect the money from him at the end of the term? Also, fortunately I have never had to take anyone to court before, if I can pay the full balance and collect that from him how is the judgement paid to me? Do they set some type of payment plan for him? Just curious...

Thanks for any and all help!

You can pay however you'd like, but unless you plan on taking him to court after each payment is made, you sue for the full amount after you've paid the full amount.

 

[j_diddy]

You can pay however you'd like, but unless you plan on taking him to court after each payment is made, you sue for the full amount after you've paid the full amount.

Thank you! I was not sure if I would be able to pay the full balance and sue right away since there are still scheduled payments.

 

[dcatz]

if I can pay the full balance and collect that from him how is the judgement paid to me? Do they set some type of payment plan for him?

If you now understand that you can pay the full balance and do and sue successfully, the court is not going to collect for you. Some courts permit a judgment debtor to petition for a payment plan post-judgment. Of those, some request the judgment creditor's approval and, if withheld, leave you to your own devises. Some will order a payment plan without approval, if a financial statement warants it.

I haven't found any reference to either in your statutes, but much of what goes on in SC is left to the judge's discretion. You could find out more by calling the court and asking. And, if the judgment debtor doesn't request it, it's irrelevant anyway.

 

[racer72]

A few weeks ago I watched a trial with similar implications except it was a car. The primary purchaser totalled the car and quit making the payments, the co-signer then paid off the loan and sued for reimbursement. Both told their sides of the story then the judge called for a recess and said he would make his decision in an hour. The judge came back and found for the defendant based on the fact that a co-signer is just as liable for the loan as the primary debtor, the co-signer could have taken protective measures to protect his interests but did not and that there was no legal agreement for repayment between the primary purchase and the co-signer. Just a heads up, being a co-signer and making the payment may not give you a slam dunk if you sue in court.

 

[j_diddy]

A few weeks ago I watched a trial with similar implications except it was a car. The primary purchaser totalled the car and quit making the payments, the co-signer then paid off the loan and sued for reimbursement. Both told their sides of the story then the judge called for a recess and said he would make his decision in an hour. The judge came back and found for the defendant based on the fact that a co-signer is just as liable for the loan as the primary debtor, the co-signer could have taken protective measures to protect his interests but did not and that there was no legal agreement for repayment between the primary purchase and the co-signer. Just a heads up, being a co-signer and making the payment may not give you a slam dunk if you sue in court.

Thanks for the heads up and ty dcatz for the info about the payment plan. In the case you said that the judge said the co-signer could have taken protective measures to protect his interests but did not.. was there something that happened that the co-siger could have prevented? I am not sure what anyone can do to protect their interest in a vehicle if it is wrecked by the primary driver unless the co-signer knew he was drinking or something along those lines. Also we do not have any written agreement that he would pay the full amount either but we both bought motorcycles at the same time so there would not be any reason I would have anything to do with his motorcycle other than guaranteeing (sp?) the loan. Do you think that would make any difference in the matter of not having a written agreement? I wish I would have now but I guess thats the way these things always go. Thanks again for everyones help, you guys have been great!