If My Sister Borrows $$$, Does She Have To Pay It Back?

i have a sister who purchased a vehicle then, about 1 year later they could not afford the payments due to income loss. She returned the vehicle to the dealer and they then sold the vehicle there is a balance due of 18,000 remaining from what they originally purchased it for and what they sold it for. Is my sister liable for the 18,000?

Rayleen

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Hi Rayleen,

Yes, your sister is liable.  More importantly, the $18,000 balance will probably be pursued and if ignored it may result in a summons to appear in court and a deficiency judgment entered against her.  Depending on your state’s law, this could result in wage garnishment or attach to other assets she might own.  Odds are it’s not going away. 

If she has no income then she should consult a bankruptcy attorney.  A Chapter 7 bankruptcy may wipe out this debt and give her a fresh start.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.