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Collections Law/collection on car loan

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Expert: Regan Shinski - 3/11/2010


Question
In my divorce settlement the ex got the car the car was in both our names. She has defaulted on the loan the car was repossessed auctioned off for $8000 under blue book. Now I am being sued for the debt. In the divorce settlement she was responsible for that debt. Is there anything I can do here to get out of this so they will her pay this debt.

Thanks,
Fred

Answer
Hello Fred:

You did not send this question to me but I saw it in the question pool.  I don't know if you have resolved the issue or how long ago you asked the question but I thought I would weigh in.

I'm sorry you are in this situation.  Sadly, the bank will not care if you have a divorce decree showing her responsible for the debt.  They made the contact with the two of you, so they have the right to sue you.  Courts will enforce their contract so you are at risk of a judgement.  In many states that can be followed by wage garnishment, property liens, and freezing of bank accounts.

YOUR option is to sue your ex.  You will need to show the $8000 debt from the car - or your payment of the debt - and the decree showing her to be responsible.  At that point, you will likely get a judgement against HER that allows you to collect from her.  It will NOT end the action the bank has against you.  This is you only real option in terms of court proceedings.

Good luck, I hope it works out for you.

Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

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