Legal Question in Credit and Debt Law in New York

Financial responsibility

My cousin at the age of 19, co-signed for a vehicle with her then boyfriend. He has defaulted on the loan, the car dealer actually added approximately $10,000.00 from the traded vehicle to the new loan. Now that the vehicle is reprosessed, is she liable for the difference of this loan, after the bank sells it for fair market value. The exboyfriend is going to go through bankruptcy proceedings. This leaves her solely on the loan. She was 19, had a part time job, and by no means should have been able to qualify for this loan. To place it into prospective, she earned less than $500.00 per month at the time of loan, the loan payment per month was in excess of that. As a minor, or under 21 years of age, can she be held liable for the reminants of this loan? What recourse does she have? I thank you in advance.


Asked on 9/19/05, 1:43 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Financial responsibility

Yes. She is not a minor at the time she signed for the loan. If she cannot pay for the difference between the loan balance (after the credit for the re-possessed vehicle is taken) she ought to consider filing chapter 7 herself.

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Answered on 9/19/05, 3:02 pm


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