If you co-signed a loan with your ex and now want out, you can ask to be removed, but there's a possibility the lender won't agree. Once you sign, you're just as responsible for that debt as the primary borrower, and lenders don't give that up easily. In fact, a large share of cosigners end up paying part (or all) of the loan themselves. Here's how to get out of a cosigned car loan after divorce or breakup.
Key Takeaways:
- Getting removed as a cosigner is possible, but approval rates are low and depend on the borrower qualifying on their own.
- If a release isn't an option, refinancing, paying off the loan, or selling the asset are the most realistic ways out.
- As a cosigner, you're fully responsible for the debt until it's paid off, and missed payments will impact your credit.
Asking the Lender to Release You
Before trying anything else, you can ask the lender for a cosigner release. In most cases, you'll need to submit a formal written request and complete whatever paperwork they require. Some loans include built-in release options; however, auto loans usually don't. If your loan doesn't specifically allow for a release, getting removed becomes much harder.
And even when it is an option, lenders will take a close look at whether the primary borrower can handle the loan alone. They'll review income, credit score, and overall debt load. If the borrower looks stable on paper, you might get approved. If not, the lender is likely to say no. Most requests to remove a cosigner get denied, so it's not something you can rely on.
Why It's So Difficult to Get Removed
From the lender's perspective, you're part of what made the loan safe in the first place. Removing you increases their risk, so they have very little incentive to agree unless the borrower clearly qualifies on their own.
That's why even borrowers who've been making payments for a while don't always get approved. The lender isn't just looking at payment history--they're looking at the full picture.
Your next move usually involves working directly with the borrower. One option is refinancing. If the borrower's credit has improved, they may be able to take out a new loan in their own name, which pays off the original loan and removes you from it.
Another route is paying off the loan entirely. That could mean the borrower pays it off, or you step in to clear the balance yourself. It's not ideal, but it does end your obligation immediately.
Selling the asset is another way out. The proceeds go toward the loan balance, and once it's paid off, you're free of it. This only works cleanly if the asset is worth at least what's owed.
If payments become a strain, you can ask the lender about forbearance. It may temporarily pause payments, but it won't erase the debt--you'll still owe it later.
What to Think About Next Time Someone Asks You To Cosign
If someone asks you to cosign, the real question is whether you're prepared to take over the loan if things go sideways. It's a commitment you should take time to consider. Got more questions about cosigning? Contact us today! You can be sure that you will be treated the All-Star Way.