Ex-Husband Defaulted Private Student Loan

lshaffer · #1 06-20-2007, 06:42 PM

I co-signed a private student loan for my now ex-husband to the tune of 8K in 1997. We divorced in 2000 and he has defaulted on the loan. I don't even know if he ever made a payment, the loans were in deferment when we split.

Now I am getting collection calls from an agency the loan has been sold to. As per our divorce decree the loan is his financial responsibility. The loan was in Texas and I understand it is a community property state so legally I am responsible for the repayment just as much as he is.

I have several questions:

1. Since it is a PRIVATE student loan (Wells Fargo originally, I think) can they garnish my wages or freeze my bank accounts if I continue to ignore them?

2. Is there a SOL on this thing?

3. They are threatening to sue me. What are the odds they will? I own no property, so there is nothing they can put a lien against.

Am I missing something here? I need someone to shine a light in this dark closet and expose any boogey men that might jump out and make my financial life miserable. I have since remarried and don't want my new husband to pay (literaly) for my stupidity from 10 years ago. Help!

Mr. Knowitall · #2 06-21-2007, 12:05 PM

The treatment of the loan will depend on whether it is a federally guaranteed student loan, and if so whether it falls under the category of loan which is not subject to either state statutes of limitation or discharge in bankruptcy (outside of extreme circumstances).

Whether or not they can garnish your wages depends on the laws of the state where you live. They would not ordinarily be able to garnish wages without first getting a judgment in court, although they may be able to pursue other sources of funds such as a tax refund.

I cannot guess how likely it is that they will sue you. That will depend on their internal policies.

lshaffer · #3 06-21-2007, 03:44 PM

This is not a federally guaranteed loan.

seniorjudge · #4 06-21-2007, 04:03 PM

You best be getting a lawyer.

Mr. Knowitall · #5 06-22-2007, 05:09 AM

As you disregarded the instruction to tell us your state, you need to investigate your state's statute of limitations and borrowing statute (if any).

lshaffer · #6 06-22-2007, 10:54 AM

Careful Mr. Knowitall...see 2nd paragraph of original post for the state

aaron · #7 06-22-2007, 11:39 AM

That indicates where the loan originated. It does not tell us anything about where you presently are.

lshaffer · #8 06-22-2007, 03:40 PM

Thank you for correcting me and helping me be better....Texas. I am going to seek counsel here in Dallas.

aaron · #9 06-23-2007, 07:26 AM

Do you know when your ex's deferment would have ended?

lshaffer · #10 06-23-2007, 01:15 PM

I sure don't. I try to have as little contact with him as possible and haven't spoken to him in 2 years.

I did get some good news yesterday...I think. I took the time to talk to the collector who phoned last night to get more specifics instead of just reacting. It turns out this loan is a "personal loan" with the purpose marked for "education". I confirmed it's not federally secured.

I also requested a copy of the contract because of other discrepancies that came up in the course of my conversation with her (i.e.: she said I was the borrower and the ex the co-signer, not the other way around and the date she kept referencing falls after our divorce in 2000). She said she doesn't have a copy of the contract and will have to see what can be done to locate it and fax it to me.

The loan started its life as a Wells Fargo personal loan that was sold to a company in New York called RJM who bought WF's bad debt.

Having said all that, since it's a personal loan, I don't think this is a Private Student Loan although that's what they were trying to lead me to believe.