[KY] [KY] I owe money for a repossessed car, what are my options?

Lexi, Chatbot

I’m sorry to hear about the difficult situation you’re facing. Have you already responded to the civil case filed against you by the collection company?

Lexi, Chatbot

Do you have any documentation or evidence regarding the circumstances of your income loss during the Covid layoffs and your wife’s stroke that could support your defense in this case?

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your civil case.

Richard

Hello. My name is Richard and I have been a licensed attorney for over 25 years and hope to be of assistance. Please be advised that this website is for information purposes only and I cannot formally represent customers of this website or perform actual legal services on your behalf.

I know your question is important, and I’m working on typing an answer to your question now. Sometimes responses and replies take time, and we ask you to be courteous and patient to allow the expert to type your answers to you and also to others.

Richard

What state are you in?

Richard

Thank you for the information. Based on what you’ve shared, here are the key legal points and potential defenses you may want to consider asserting in your response or at trial, given this is a deficiency balance collection case in Kentucky:

1. Failure to Provide Required Notice of Auction (UCC Violation)
   Under Kentucky law and Article 9 of the Uniform Commercial Code (UCC), the secured party (creditor or their assignee) must provide reasonable notice of the time and place of the auction or sale of the repossessed vehicle. Failure to do so may bar or reduce their ability to collect a deficiency. You stated that they did not notify you of the auction — that is a significant potential defense.
2. Commercial Unreasonableness of the Sale
   Even if notice was sent, the creditor must conduct the sale in a commercially reasonable manner. If the vehicle was sold for significantly less than fair market value or rushed during a holiday period (e.g., Christmas Eve repossession), you can argue the sale was unreasonable.
3. Breach of Contract or Statutory Duties
   If the creditor failed to comply with contract terms or Kentucky law (e.g., KRS § 355.9), that supports a defense or counterclaim.
4. Equitable Considerations / Hardship
   While not a direct defense, you can present hardship circumstances — Covid job loss and your wife’s medical emergency — during settlement or enforcement stages.
5. Discovery Review and Litigation Strategy
   Review all discovery for missing notices, documentation gaps, or errors in the balance owed. You can file motions to compel or exclude noncompliant evidence.
6. Next Steps
   If you haven’t filed a formal answer, do so by the deadline (typically 20 days after service in Kentucky). Assert defenses such as:

• Failure to provide notice under KRS § 355.9-611 and KRS § 355.9-612
• Commercial unreasonableness under KRS § 355.9-610
• Breach of contract

If your attorney is involved, ensure they review discovery for UCC violations. The lack of auction notice alone could be a viable basis to dispute the full deficiency.

Richard

Understood. Given your financial hardship, the civil deficiency balance lawsuit in Kentucky, and the failed payment plan negotiations, the best and least expensive path forward is likely:

• File a Formal Answer and Assert Affirmative Defenses
  This protects you from default judgment and keeps negotiation leverage.
• Request Court-Ordered Mediation (if available)
  Pulaski County courts often offer free or low-cost mediation. This can force the plaintiff to participate and agree to a payment plan.
• File a Motion to Compel Discovery (if needed)
  If you suspect they didn’t follow procedure, compel them to produce documentation. This pressure can encourage settlement.
• Propose a Stipulated Judgment with Payment Plan
  Offer to sign a stipulated judgment agreeing to structured payments (e.g., $100/month). This avoids immediate garnishment.
• If Judgment Is Entered
  You can still request installment payments under KRS § 426.705 by showing financial hardship, which may stop enforcement actions.

Summary – Least Expensive Path:

1. File your answer with defenses now.
2. Request court-ordered mediation.
3. Negotiate a stipulated judgment or installment plan.
4. If judgment is entered, file a motion to pay in installments (KRS § 426.705).

Richard

No problem. Best of luck.