If I am carrying an auto loan for my ex-wife and I am looking to get out of it what can I do?

I am the only one on the loan. However, she is listed on the registration. Everything was good for a year after the divorce. After that she is habitually late on payments and has not paid insurance for three months. So, I have been covering that cost to save my credit. She has completely closed communication for the last 3 months. Can I repo the vehicle and sell it with her name on the registration? I just want out of the loan with out ruining my credit. What can I do?

Asked on March 3, 2012 under Family Law, Washington


Kevin Bessant / Law Office of Kevin Bessant & Associates

Answered 8 years ago | Contributor

It appears that because you are the only person on the loan, then you are considered the "principal debtor" of the loan in the eyes of the bank/lender. As the principal, you are responsible for the debt, unless the debt was somehow discharged from you through bankruptcy or divorce settlement, and this discharge was approved by the lender. If this is not the case, then you are on the hook for the payments of that loan, and any failure to pay or repossession of the vehicle will reflect negatively on your credit report and not your ex-wife's. My advice is to contact an attorney in your area who handles creditor/debtor issues or even a divorce attorney to see what your remedies are in this situation based on your State's law to help you protect your credit and discharge this debt.

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