Expert: Terry Leeders - 9/10/2009

Question
Hi,

My ex-wife and I got a dissolution 2 months ago, in the decree she is fully responsible for her debts and I kept the house with the requirement that I get her off the loan.  I was able to refinance to get her off the loan, she signed the quit claim deed, but she is having problems paying her debts and 1 in particular was set up as a joint account.  This account is currently showing up as 15 days late cause she has not been making payments.

She has started the process of filing the Chapter 13 and she told me that they will not come after me for that debt.

My questions are, how do they remove me from that obligation, and how does it affect my credit ?  And what can I do if it will negatively impact my credit ?

The bankruptcy will be filed in Ohio.

Thanks,

Jon

Answer
Your name doesn't come off that debt, unless the lender is willing to do so. In the chapter 13, she can pay it 100% to protect the cosigner, you.  Check her plan to see that this is the case.  Otherwise, you will need to go thru divorce court if the debt isn't completely satisfied, to get her to pay the rest after her bankruptcy.