Legal Question in Consumer Law in Pennsylvania
My son had his truck repossed recently. He paid approximately over the last two years $13,000 - it was an upside down deal - he owed more than the truck was worth by $6,000 and the bank now wants him to pay the so much a month totally $6,000 or the bank will take him to court. Is he legally obligated to pay the $6,000 even though his truck was repossed?
1 Answer from Attorneys
I cannot ethically discuss your adult son's issue with you. Know that as a general rule, if a vehicle is repossessed and sold, there usually is a deficiency left owing and the owner of the vehicle will be stuck paying for a car that he/she no longer owns as well as any repo costs and sale costs, minus the proceeds from the sale. The lender will sue the vehicle owner and/or any co-signers as well.
While the sale could possibly be challenged if it was not done in accord with the Commercial Code (I do not know what state law applies here since I do not know where your son actually resides), his best bet would be to work something out.
If your son lives in PA and would like assistance in resolving this matter for a reasonable fee, feel free to have him contact me.
Otherwise, I suggest that your son start saving his money so that if and when he is sued, he will be able to offer the lender or the lender's assignee a nice sum to settle the debt. Before he pays, he needs to get the terms of any settlement in writing.
Rachel Hunter
Attorney at Law
(678)-687-9693
Admitted in GA, PA & NC
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