Co-lessees on vehicle

[Faalyn]

What is the name of your state?Ohio
So I "co-signed" on a vehicle lease with my ex to try to help him with his credit score. We split and he relinquished the vehicle after about 12 months on a 36 month lease. They have auctioned the vehicle and are now wanting to collect the remaining $12,000 unpaid on the balance of our lease. I have spoken with the firm representing the lender and they are stating the lender is only authorizing them to attempt to collect the debt from me and not from the other party (my ex). I would like to at least fight this for the sake that I would be liable for only 1/2 that is due and he the other 1/2, is this possible? Also, the other party involved states that he (at least verbally) wants to take responsibility for this and relinquish me from responsibility. There are 2 passages that I am wondering about might affect these 2 questions:

A. If more than one lessee signs this Lease, all lessees will be jointly and severally liable. Additionally, you can waive or delay enforcement of your rights as to one lessee without affecting your rights as to any other lessees, and you can release any lessee from his or her obligations without releasing any other lessees from their obligations:
B. Your waiver or delay in requiring any other lessees from their obligations or in enforcing your rights will not affect your ability to require me to perform the same obligations or to enforce your rights afterwards.

Any help is appreciated.

Thanks

 

[quincy]

As co-signer, you can be held liable for the entire amount owing on the loan. You can seek reimbursement from your ex.

 

[adjusterjack]

There are 2 passages that I am wondering about might affect these 2 questions:

A. If more than one lessee signs this Lease, all lessees will be jointly and severally liable. Additionally, you can waive or delay enforcement of your rights as to one lessee without affecting your rights as to any other lessees, and you can release any lessee from his or her obligations without releasing any other lessees from their obligations:
B. Your waiver or delay in requiring any other lessees from their obligations or in enforcing your rights will not affect your ability to require me to perform the same obligations or to enforce your rights afterwards.

They don't. The lease is already in default. You owe if he doesn't pay.

Also, the other party involved states that he (at least verbally) wants to take responsibility for this and relinquish me from responsibility.

The only way he accomplishes that is by paying the balance owed. Otherwise he's BSing you.

The creditor is not going to release anybody until he gets his money. He's coming after you because he knows that you are the pigeon with the money and good credit.

That's the danger of co-signing.

 

[Litigator22]

What is the name of your state?Ohio
So I "co-signed" on a vehicle lease with my ex to try to help him with his credit score. We split and he relinquished the vehicle after about 12 months on a 36 month lease. They have auctioned the vehicle and are now wanting to collect the remaining $12,000 unpaid on the balance of our lease. I have spoken with the firm representing the lender and they are stating the lender is only authorizing them to attempt to collect the debt from me and not from the other party (my ex). I would like to at least fight this for the sake that I would be liable for only 1/2 that is due and he the other 1/2, is this possible? Also, the other party involved states that he (at least verbally) wants to take responsibility for this and relinquish me from responsibility. There are 2 passages that I am wondering about might affect these 2 questions:

A. If more than one lessee signs this Lease, all lessees will be jointly and severally liable. Additionally, you can waive or delay enforcement of your rights as to one lessee without affecting your rights as to any other lessees, and you can release any lessee from his or her obligations without releasing any other lessees from their obligations:
B. Your waiver or delay in requiring any other lessees from their obligations or in enforcing your rights will not affect your ability to require me to perform the same obligations or to enforce your rights afterwards. Any help is appreciated. Thanks

To begin in case you aren't aware the phrase "jointly and severally liable" means that you and your ex boyfriend are each individually responsible for the entire $12K and not just a proportional share of that amount.

It also means that the leasing company has the legal option or choice of pursing efforts to collect the debt from one or the other (severally) or both of you (jointly). And neither or you have any control over the leasing company's decision with respect to collecting the debt.

Don't misinterpret this to mean that because the leasing company has elected to focus its collection efforts against you and perhaps not the ex that the ex is scot-free because he isn't. He is potentially liable to you for a proportional or fair amount of any part of the $12K that you are compelled to pay the leasing company. It is what is known as the right of contribution between joint obligors.

The key words here are "a proportional or fair amount". Your post suggest that his fair amount would be 50%, that is, you would be entitled to be reimbursed for half of what you are compelled to pay the leasing company up to the full amount of the claim. However, unless the car was leased for your joint use, I think you are being far too generous.

Anyway these are complex legal issues and I've merely touched on them. They require affirmative action on your part and only through legal counsel.

Lastly if this language from your post is taken from the lease agreement as empowering or vesting such a right in the lessor; to-wit:

". . . and you [sic] can release any lessee from his or her obligations without releasing any other lessees from their obligations.":

Then it can be ignored as being unconscionable and one of adhesion and thus unenforceable. It is an unsuccessful attempt to avoid a fundamental principle of the laws of suretyship that: A release of one or any co-obligor without the consent of the remaining co-obligors acts by operation of law to release all obligors.

 

[Faalyn]

Thank you all very much for your help. This is what I was afraid of.

"However, unless the car was leased for your joint use, I think you are being far too generous. " Yes you are correct, the vehicle was not for my joint use, it was his vehicle, but fighting for and then collecting the $12k from him seems so unobtainable at the moment. I am contemplating filing bankruptcy because of this. If I do enter into a payment agreement with the collectors, can I still proceed with suing him for monies or do I need to have paid the balance prior to that?

 

[Litigator22]

Thank you all very much for your help. This is what I was afraid of.

"However, unless the car was leased for your joint use, I think you are being far too generous. " Yes you are correct, the vehicle was not for my joint use, it was his vehicle, but fighting for and then collecting the $12k from him seems so unobtainable at the moment. I am contemplating filing bankruptcy because of this. If I do enter into a payment agreement with the collectors, can I still proceed with suing him for monies or do I need to have paid the balance prior to that?

As I touched on before sorting out the rights of contribution between joint or co-obligors can become rather intricate depending on the particular circumstances that define that relationship. The object is to impose conditions of fairness with regard to the individual debtor's responsibilities - not as to the creditor, but as among themselves.

Suffice it to say here that you would have no right to seek reimbursement from the ex until you'd paid more than your fair share of the debt. But again there needs to be a determination of what is your fair share of that debt. If as between the two of you, your fair share of the debt is zero; that is, you signed the lease solely for the purpose of accommodating the ex deriving no personal benefit, then you'd be entitled to be reimbursed for any amounts you were to pay towards the debt.

But if it is found that your share is one half, then you'd only be entitled to seek reimbursement upon paying more that one half of the debt. In other words, compensation for having paid towards the ex's share of the debt.

Note that when I say found I mean a factual finding by the court.

Good luck, Miss "A costly lesson learned."