What to do if I signed a personal guarantee on a loan with my now ex-husband and he has not paid the loan since his real estate development did not go forward?

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What to do if I signed a personal guarantee on a loan with my now ex-husband and he has not paid the loan since his real estate development did not go forward?

Can I file for bankruptcy to get out from under this loan that I never wanted to be party to?

Asked on July 2, 2014 under Bankruptcy Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you signed a personal guaranty, you are obligated to it; if your ex-husband has not paid, the lender/creditor can seek payment from you.

If they do, you could file bankruptcy to discharge the debt, but will most likely still end up paying some of it--bankruptcy usually reduces the amount you pay, to dimes or even pennies on the dollar, but usually does not wipe out debts completely--ESPECIALLY if you have the money (income and/or assets) to pay the debt, but just don't want to (the results of your bankruptcy filing will depend on the balance of your debts vs. income and assets; bankruptcy is designed to help people who can't pay their debts, not merely people who'd prefer to not pay). You don't have to file bankruptcy "in advance" but can wait until (and if) the lender proceeds against you).

You could also, if you are sued for the money, sue your ex to get  from him the amount you have to pay out due to his breach of his obligations; of course, if he doesn't have the income or assets to pay, that will not help you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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