Dealing with Debt

questions & answers

Question: Iam cosigner on car loan. diffency is 10200 I just can't afford to pay them cause all my civil services income go into bills. nothing left. whats the worst they can do to me. I do have a house worth 78000 and I owe 67000

Answer: If the owner is not able to make payments, the cosigner is responsible for making payments. If the car has been repossessed and there is a deficiency, meaning that the proceeds of the sale of the car do not provide for the total amount owed on the loan, the creditor will have to sue you and get a deficiency judgment from the court before they can take any money from you. If the court grants the creditor a deficiency judgment, the creditor can freeze money in your bank account, garnish your wages, or put a lien on any property you own.

Arizona Revised Statutes 33-961 through 33-968 discusses the laws in Arizona regarding judgment liens on real property. Please speak with an attorney to learn more about how your property and/or income may or may not be affected by the deficiency.