Expert: Ontrack Financial Group llc - 4/21/2009

Question
My husband and I divorced a little over a month ago.  During the divorce I have continued to pay the vehicle payments (I was required to pay) and also our house payment (which he was responsible for during the divorce).  He gave up everything in the divorce and I was awarded a quick claim deed to the house and agreed that I would pay for the vehicles.  I found out last week he had filed for bankruptcy right after our divorce.  Will this affect me since both of our names are on the titles of the car and on the mortgage?  Can they reposess my vehicles?  I am scared to death.  I have worked so hard and fought to keep my home from foreclosing when I found out he wasn't paying the house payment.  How can he file bankruptcy when he is not responsible for these bills?

I am desperate for any information you can provide me.

Answer
Dear Angie,

Thank you for your question.  

 As long as your ex is on both loans, it may affect the status of the home and the vehicle.  A quick claim affects the title on the house not the mortgage contract.  Without reviewing the mortgage contract, we can't give you an exact answer.  As for the vehicle, the same applies.  The best way to protect yourself and start fresh: Refinance both loans and take him off the title.

The last question is rather simple, a divorce decree has nothing to do with a contract.  If his name is still on the loan he is a responsible party, until

1. the party is taken off the loan by refinancing
2. the party files bankruptcy

Warm Regards,

Ontrack Financial Group