Credit Acceptance horor story. what should i do?

[zaphod77]

What is the name of your state (only U.S. law)? Colorado
A few years ago, my g/fs son got a car on a sub-prie, auto loan. Because they didn't have a car disabler in it, they forced her to cosign, even though she didn't independently qualify for the loan. I was not present to tell her not to or I would have.

Still since he did have his job, and had his only expenses were food, insurance, and the car payment, he was able to make the payments and all was good.

Then he got fired. We were able to help him make some payments, but, go figure we were unable to continue it. The car was surrendered voluntarily, and auctioned off at what turned out to be fair market value, and a deficiency judgement was entered.

At this point, we decided to wait until we got served. Sherri recieved a friendly letter from their lawer, and an offer to settle for half of the debt (which we still couldn't pay) was given, and rejected.

in june i left to see my family. That friday, an officer came by while the son was home and the girlfriend was at work. The son accepted both sets of papers, and promptly threw them out while she was at work. so she never got served properly.

We did not discover that until we received a notice of default judgement. We only got the detail about the paperwork from the courthouse ourselves after it was too late.

The son is now in another state. The deadline to answer has passed.

Sherri had also received offers (independently) to refinance the car that she didn't even qualify for.

I believe that the loan was negotiated in bad faith, because they took on a co-signer they knew couldn't afford to make the payments, with the intention of garnishing her wages for less then the amount of interest if he lost his job (as verified on a copy i obtained of the original loan paperwork which showed her income only (which is separate from mine)).

I understand it should be possible to re-open the case, but that it's pointless to try unless we believe we can win.

Should we reopen the case, is there any chance the remainder of the debt could get thrown out due to their bad faith?

 

[Zigner]

in june i left to see my family. That friday, an officer came by while the son was home and the girlfriend was at work. The son accepted both sets of papers, and promptly threw them out while she was at work. so she never got served properly.

You're wrong. https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Rule_Changes/2012/2012(10)%20marked.pdf

I understand it should be possible to re-open the case, but that it's pointless to try unless we believe we can win.

On what basis? Your GF was properly served and defaulted.

Should we reopen the case, is there any chance the remainder of the debt could get thrown out due to their bad faith?

There was no bad faith. And, just to be thorough, unless you are an attorney in Colorado (you're not), then there is no "we" involved here.

 

[zaphod77]

You're wrong. https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Rule_Changes/2012/2012(10)%20marked.pdf

On what basis? Your GF was properly served and defaulted.

There was no bad faith. And, just to be thorough, unless you are an attorney in Colorado (you're not), then there is no "we" involved here.

So the son screwed her over by throwing out the paper.

So the only recourse is bankrupcy, and i should be asking about in that section instead? I have questions about that too.

The plan was to wait to be served, then find a lawyer to see if we could beat it, and if not, to file for bankruptcy THEN.

So bullying a co-signer that does not qualify for the loan in the first place into signing is NOT bad faith? I don't see how... A co signer is supposed to be able to assume the debt if the original borrower can't pay, so she should have never been accepted as one in the first place.

 

[Zigner]

So the son screwed her over by throwing out the paper.

BINGO! Now you (plural) know who to blame for that.

So the only recourse is bankrupcy, and i should be asking about in that section instead? I have questions about that too.

Please ask your GF to log on and ask her own questions.

The plan was to wait to be served, then find a lawyer to see if we could beat it, and if not, to file for bankruptcy THEN.

It's generally better to be proactive than to be reactive.

So bullying a co-signer that does not qualify for the loan in the first place into signing is NOT bad faith? I don't see how... A co signer is supposed to be able to assume the debt if the original borrower can't pay, so she should have never been accepted as one in the first place.

TOGETHER, they qualified. Your GF is a big girl, she knows (or should know) what she can afford. You are so eager to place blame, and that's ok I suppose, but just make sure you place it squarely on the shoulders of the two people who caused this.

[SUB](Your GF and her son, in case you didn't get the implication)

[/SUB]

 

[zaphod77]

BINGO! Now you (plural) know who to blame for that.

Please ask your GF to log on and ask her own questions.

She has no idea what to ask. As for the bankruptcy questions, they actually would affect me.

TOGETHER, they qualified. Your GF is a big girl, she knows (or should know) what she can afford. You are so eager to place blame, and that's ok I suppose, but just make sure you place it squarely on the shoulders of the two people who caused this.

This flies in the face of everything i know, but if that's really how it works, oh well.

It would never had happened if i was actually present. She caved in the face of aggressive negotiation (if you don't do this, he can't get his car, and he can't keep his job.)

 

[Zigner]

She has no idea what to ask. As for the bankruptcy questions, they actually would affect me.

No, it does not. You are not legally involved at all. That's the difference between "girlfriend" and "wife".

It would never had happened if i was actually present. She caved in the face of aggressive negotiation (if you don't do this, he can't get his car, and he can't keep his job.)

I'm sorry that your girlfriend has no spine. I would suggest that you advise her not to go car shopping without taking somebody with her who has a stronger will.

 

[adjusterjack]

So the only recourse is bankrupcy, and i should be asking about in that section instead?

Please don't. We all read all the forums and can answer your bankruptcy questions in this thread without ending up with parallel discussions on the same situation.

How much is the deficiency balance owed?

And how much was the settlement offer?

Does she have any other debts that are delinquent? Say what they are and how much.

Why do you think her bankruptcy would affect you?