Question:

I co-signed on a vehicle loan for my girlfriends daughter. She wasn’t making regular payments and my credit was damaged. I was in the process of purchasing a home when I found out about this. I ended up paying off the loan to save my credit and the car loan was added onto my home loan. I am trying to recoup the money that I paid. Meanwhile my girlfriend’s daughter has moved to MN and she is asking for the title of the vehicle to get MN plates and tabs for the vehicle. Both of our names are on the title but mine is the primary. Her father is telling me that he is going to do a Ch 7 on her. I was in the process of writing up a contract for her to sign so that I can begin getting my money back but the whole idea of Ch 7 has me holding back. Any ideas on the best route for me to get my money back, roughly $8,100 + another $1,875 that I have loaned to her in the past 6 months. Thank you any help would greatly be appreciated

Jim's Reply:

You have 2 choices that I can see. You can hire a lawyer to protect your interests and I have doubts that would do anything other than inflame an already awkward family situation...you'll live with whatever happens for life. If it were me I'd step up on a pedestal and write it all off to experience. Yeah, I know...that's a bitter pill.
But you'll never loan her or anyone else money again and you'll be a hero. Otherwise, start shopping for the baddest lawyer in town. Good luck.