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I cosigned for a car loan and the primary debtor is in default can I sue the primary debtor in court to pay the loan

Asked over 3 years ago - Douglas, AK

I cosigned for a car loan and the "friend" has now defaulted on just over $10,000. I know I can go to small claims court for disputes of $5000 or less, what do I do if it over $5000. If I take it to civil court do I have to get a lawyer. If I have to pay for a lawyer, in the end I might be better off financially going for just the $5000 in small claims. What is your suggestion?

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Attorney answers (3)

Lesley Abigail Hoenig

Reputation Level 14

Answered over 3 years ago. Bankruptcy Attorney in Mount Pleasant, MI.

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No one is ever required to have an attorney, however, I don't recommend proceeding without one in civil court. The reason one typically would not need an attorney in small claims court is because the rules are relaxed. You may not know the rules well enough to handle a civil litigation case on your own. It wouldn't hurt to consult an attorney. Often they will do this type of case on a contingency, so you should still be able to recover more than $5000. Also, getting a judgment against someone does not magically make them pay, so unless you know how to collect on the judgment you would benefit from having an attorney. It doesn't hurt to at least consult with an attorney about it.

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Peter Robert Stone

Reputation Level 15

Answered about 3 years ago. Debt Collection Attorney in Sacramento, CA.

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For the difference between $5k and $10k you should do it yourself in small claims court, unless your court has a good do it your self clinic, and they can help you with a regular court complaint. In addition in some cities you can find a new attorney to do it for a flat fee or contingent fee, but you will have to call around a lot and ask everyone if they know of such an attorney.

Peter :)

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Christopher L Cauble

Reputation Level 11

Answered about 3 years ago. Litigation Lawyer in Grants Pass, OR.

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Well--I deal with this all the time with my day to day business clients. In Oregon you can sue for up to $7,500 in small claims court so the answer is easier here. I would take it to small claims court. Your car loan contract likely has an attorney fee provision so I would add an attorney fee claim to the small claims request (even though you are not hiring a lawyer). That would allow you to tack on attorney fees in the collection proceedings if you have to hire a lawyer to collect the judgment. I dont know a lot of hard charging lawyers who take these cases on contingency, so you would have to pay a lawyer hourly. When I take these cases, I usually do it because a client just wants to make a point or because the client doesnt want to deal with it. But, sometimes, the attorney fees cost as much as the amount in dispute.

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