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I cosigned a new car loan for my nephew and he's failed to make his payments. What do I do in this situation?
My nephew was laid off from his job, so I'm trying to be patient with him, but I'm worried that my credit will take a nosedive with the non-payments. I'd appreciate your advice.
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Unfortunately, there is no single solution in this situation that will save your
credit
. If your nephew has not missed many payments, the best option for everyone involved would be for you to help him get caught up. The hit to your credit for the missed payments would be minimal, your nephew would get back on his feet, and both parties would avoid any legal repercussions. Selling the car to get out of the debt may be another option, but depending on how quickly the car sells, you may still have to pay out of pocket for some of the payments.
If your nephew’s situation is just completely out of control, you may want to seek advice from a bankruptcy lawyer. However, there are major consequences associated with bankruptcy and it should be your last option.
“
View full answer
- Gregory R.
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