What to do if ex-husband has defaulted on a loan that I co-signed for?

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What to do if ex-husband has defaulted on a loan that I co-signed for?

If the divorce papers its 100% his responsibility, can they come after me? He cannot refinance the truck in his name due to low credit scores and I can’t take the payment on. Do I take the truck back or pay the loan off?

Asked on August 31, 2010 under Family Law, Oregon

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Unfortunately, they can do this. You cannot simply take your name off of a document in which you are the co-signor. Since you co-signed, you are gave the assurance that if your ex didn't pay, you would.  Bottom line, since the loan is in default, the lender may go after you since you are also legally obligated.

You can ask your ex if he wishes to sell the vehicle or turn it in. However, since your divorce papers assign him the responsibility for this loan, and he has defaulted, you can sue him for reimbursement of any money that you may be out-of-pocket. It won't fix your credit which has probably been affected but if your're able to get any money from him it the best that you can do under the circumstances.


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