I co-signed a car loan for my daughter who has stopped making payments on the car loan. If the car gets repossessed, will the finance company sue my daughter first to obtain the amount due, or will they both sue us at the same time ? She works full time at the Post Office and I work full time as well.
The creditor likely will sue both of you, because - why not? More parties to recover, better it is for them. Have you and your daughter looked into filing personal bankruptcy? That could be a good choice if there is no extra money to pay the default.
This answer is provided for general information purpose only. It must not be construed to be considered a formal legal advice and does not form an attorney-client relationship.
Before suing you both the creditor will ask you to pay the debt. If you both refuse to pay the debt you will both be sued. That, after all, is why they wanted you as a co-signor-your agreement to be responsible for the debt.
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