Legal Question in Credit and Debt Law in Kentucky

Re: Vehical

It is not possible to give you a clear legal answer to your inquiry without a more detailed evaluation of the facts of your case. Several questions are presented:

1. What were the exact terms of the financing agreement you signed? A lawyer cannot evaluate the rights you may or may not have under the terms of a written agreement without reviewing a copy of that agreement.

2. Did your co-signer make any separate agreement with the dealership?

Generally speaking, you and your co-signer are "jointly and severally" responsible for the amount you promised to pay to the dealership or financing company. "Jointly and severally" means that if either you or your co-signer do not pay, the other party can be held legally responsible for the entire amount. Usually, financing agreements contain a provision requiring the borrower to pay all collection costs, including auction fees and attorney fees relating to any default. The creditor is required to give you credit for the fair market value of the repossessed security (the vehicle), and may usually determine that value at an auction sale. Predictably, the vehicle will sell at the auction for much less than its retail value, and you and your co-signer will be responsible for the balance of what is owed.

You are best advised to seek the services of a competent Kentucky attorney. You can telephone your local bar association for a referral, or can find a good lawyer on-line at the Kentucky Bar Association's Lawyer Referral Service:

http://www.kybar.org/Default.aspx?tabid=291

Good luck!

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