Submitted by Powerful_Fill01 t3_10qvgfw in personalfinance
Before I even start with the story. I understand that this was the most possible dumbest thing I could do at the time and that looking back at it even though I was young I should have said no to cosigning on it. I take full responsibility on my end for the fuck up and lapse of judgment.... He has not. He has since filed bankruptcy and currently has no credit debts atm. I on the other hand am sitting with a $25,000 debt collection from a $70,000 sports car. And I have no clue what to do.
About 3 years ago (19 at the time) I co signed with my father on a brand new sports car because his credit was terrible and mine was in the upper 700 range. His income (sales) was more than enough to make the payment. He told me it would help my credit immensely and that not to worry about it. Which now I know was complete bullshit.
Fast forward to about a year and half later. He tells me that he will have to give up the car due to his job letting him go and that he can no longer make payments on it. I of course cant either because its a 70k sports car. Little did I know at the time of purchasing the car, his trade in left over $10k negative equity and was rolled over into the loan. After the bank repoed it, It sold for about 45k. Now im left with an over $24,000 debt collection. Looking back now I can see I got taken advantage of and wish I was smart enough to just not sign with him. But I cant change that. What do I do now?
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I can see that this shit really doesn't sound real but here ya go Link Car was sold at auction early last year and I have just started recently receiving debt collection paperwork in the mail.
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Edit: Thanks everyone for the advice. I'll say right now, this shit really sucks as im just starting my adult life, finishing college this year. The only other debt I have is a bit on some credit cards and student loans. And my savings is pretty minimal. I'm going to contact the debt collector to see if there is any wiggle room in the amount. I know for a fact I can't pay lump sum. And even if they put me on a payment plan, the monthly payments would have to be very very small as I don't make much. Would rather not have a garnishment so if all else fails I will look into bankruptcy. The crazy thing is I really don't even know how we got approved for the loan. At the time I was just a student and had 0 income. Why would the bank have approved it in the first place?