Legal Question in Credit and Debt Law in California
Auto repossession deficiency judgment involving a minor
My step-son is 17 years old and lives with my wife (his mother) and I full time. His father bought a used car for him by financing it. The step-son is on the DMV title and our insurance policy insures the car. The father failed to make payments and the car was repossessed. The car will surely sell for less than the amount owed. If the lender decides to sue for the deficiency, can they sue me?
1 Answer from Attorneys
Re: Auto repossession deficiency judgment involving a minor
It all depends upon who was the borrower on the loan. They cannot sue you for a deficiency on the car unless you co-signed the loan. If your step-son was a signer on the loan, then his obligation would be entirely voidable by your wife as his parent, as he is not of majority age, and cannot be held liable for a contract he signed. Therefore, it is virtually impossible for the bank to seek repayment from you if you did not actually apply for, or sign for the loan.
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