I was given a car for my birthday in 2016 as a gift by my soon to be ex stepfather and mother. The auto loan is with capital one. The financing is under my name and resulted in a hard inquiry on my credit as well as my mother who is a co-signer. I was told by both parents that they would be making payments toward the cars until it was paid in full. It wasn’t until recently my stepfather stopped making payments because he is divorcing my mother. There is roughly $13,143 left for the loan to be paid off and the payments are about $311 monthly. I am a full time student working a part time job. I am currently making payments but am finding it more difficult to keep up with them.
What are my legal options to have my parents pay the remainder of the auto loan?
To be clear, receiving the car as a gift was a great gesture at the time but the financial burden it’s given me now is stressful because it isn’t an expenditure I accommodated for with the income I make.
Lastly, my mother is in the process of filing for bankruptcy. As a result of being a co-signer, my loan with capital one has been assigned to a bankruptcy agency where I have to make my payments through them.
Unfortunately for you, if you signed the loan agreement you are stuck.
Answers are provided for direction only; it is not a substitute for an office consultation.
Once you sign a loan agreement, unless you file Bankruptcy and surrender the car, you will have to pay it. You can not legally compel your parents to pay for it.
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