What my rights regarding a debt thatI am unable to pay?

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What my rights regarding a debt thatI am unable to pay?

I purchase a car for my daughter and she was to take over payments after 3 months that was a deal between the dealership, myself, and her. However when it came time for her to take over payments the dealership didn’t hold there part up it was a our verbal agreement. My daughter got behind on payments I told them I couldn’t afford to get the payments paid in full so they came and got the car and sold it at auction. The remaining balance was sent to collection agency and I am getting numerous phone calls from them. I have told them I am 65 and draw a check and am not able to pay the remaining balance.

Asked on August 4, 2011 Tennessee

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I am so sorry.  What they are coming after you for is a deficiency judgement - the amount left on the  loan after the car is sold. What is the problem here is that the verbal agreement between you and the dealership and your daughter is really not binding, as the court will look only to the contract that you signed.  They will not take oral testimony - known as parol evidence - in to account.  They will only look to the agreement.  So you need to seek help with extinguishing the debt here and what your options can be.  They will not stop calling and then they will garnish your check if it is not exempt ( if it is social security or a pension then you are judgement proof).  If you have assets, though, then you could be in trouble.  Get help.  Good luck.


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