What to do about a car loan and a divorce?
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What to do about a car loan and a divorce?
My husband and I are going through the paper work of a uncontested divorce. When it comes down to property we both owe on our own cars though we are both joint applicants for both vehicles. I have been paying for my vehicle every month but have received notices from his loan company regarding his vehicle getting repoed. He said he would pay it or purposely file for bankruptcy. Either way since we’ve been separated for a year, I’ve been cleaning up my credit and dont need any other negatives to fix. In the divorce decree, is there a way to list his vehicle as his responsibility and mine as my own once it is final so it won’t affect my credit negatively? He can’t refinance by himself because he has horrible credit
Asked on December 29, 2012 under Family Law, Texas
Answers:
Anthony Van Johnson / VANJOHNSON LAW FIRM, L.L.C.
Answered 12 years ago | Contributor
Unfortunately, the court does not interfere with the contractual obligations between parties and their finance companies. The court order could read that your husband must indemnify and hold you harmless for the financial obligations of the vehicle in his possession. And, if he fails to pay as ordered, the court could take action against him in a contempt hearing. However, the finance company can, nevertheless, come after you or damage your credit as a result of his failure to pay as agreed. If possible, you could request that the car be sold since your husband is unable to refinance the vehicle in his own name. If the car is sold, there would still be the issue of remaining debt owed on the vehicle. You should retain the services of an attorney to assist you in this matter.
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