A year and a half ago I agreed to be the primary on a car lease for my son, couldn't just be cosigner because his credit was/is so bad. So he is the cosigner. He let his insurance lapse - unintentionally, and on that one day of lapse wrecked the car to the tune of a minimum of $11,000 in damages to his car alone. He depended upon the car for work, and even though he was able to use mine in the evenings he wasn't able to put in the hours he needed, so for the past 5 months I've been making his car payments, his insurance, his fines, his storage of the car. Even though he now has a different job, I can't get him to assume these payments and I'm going deeper into debt each month, having to use my credit cards for things I need. I was laid off from the job I had when I cosigned with him and I now make much less money.
I don't know what to do. I didn't know the insurance had lapsed until after the accident.
I had a bankruptcy that was discharged nine years ago. Can I declare bankruptcy for the damages on the car after I've paid off the lease and towed the car back to the dealership? Or should I just stop paying the lease? I'm in over my head. Please advise. Thank you.
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Hello Kat,
I am sorry hear of your situation.. Unfortunately your son really left you in a bad position. To claim bankrupsy will ruin your credit for years to come. With you already having one bakruptsy, probaly ready top fall off shortly, you will have a hard time rebuilding your credit. My suggestion wold be to take your loved one to small claims court and at least try to recoup some of your loss. It would force him to pay you and you could apply that debt to the money owed.
I imagine at this point though all these fees and money owed is astronomical and you could not get alot from small claims. If you feel you must claim bankrupt you will find that now a days you actually have to go through counseling and alot of other things before and even if you will be approved.
I am not sure but when you do this they also may have the right to go back against your son to repay the debt. Hopefully someone with a little more knowledge will stop in on this post.