[kvierling]

Hello all. My name is Karl Vierling and I live in Indiana.
About two months ago, my wife and I went to our Credit Union to obtain a small car loan and in the process, our loan officer began to quiz me on my student loan situation. Knowing I had set one up with my parents a few years back (Fall 2003 for appx. 20,000 and Winter 2005 appx. 7,500), I was not surprised to find I had some debt. I simply told him what I knew of and got a look of dissappointment. My real student loan balance is appx. 105,000. After doing some research, I discovered five student loan disbursements were made, three without my knowledge. After a lot of gumshoe work I was able to obtain copies of the promissory notes "I signed" and discovered my mother was the "co-signer." In reality I never applied for these loans. This situation has brought to light a 10 year track of financial disaster that myself, my sister, and father had no knowledge of. Credit cards, loans, and my student loans, all without our knowledge because the statements were sent to my grandmothers house. My father wants a divorce and although I do not enjoy the idea, I understand and support it. I know I won't have a problem with getting these loans out of my name because I am still in school and they aren't delinquent (but are due to be paid on soon). I do however, want to limit my father's financial liability to this situation as much as possible. In what order should we proceed as far as filing fraud/divorce in order to minimize my father's financial liability and what protections can he get? He has already retained counsel for divorce.

[Mr. Knowitall]

If you wish to avoid the debts, I don't see any way to avoid making a police report and in all likelihood having your mother criminally prosecuted. Absent a police report, the creditors aren't likely to listen to any claims of identity theft, and with one they are very likely to press for prosecution.

[kvierling]

Thanks for the reply. What about limiting my father's liability to the debt as much as possible? I understand Indiana is a 50/50 state, but she did this without our knowledge and I do not want to see my father lose everything he's worked so hard for. Any advice as far as the logistics of which should go forward first? Divorce then my filing fraud, or would the divorce get put on the backburner by the Feds while they investigate her fraudulent activity?

[aaron]

He can divorce her any time he wants.

[kvierling]

Ok, so the final question is, what can be done to limit my Father's financial liability as much as possible, since this was done 1. Fraudulently and 2. without any of our knowledge?

[aaron]

There's no magic answer to your question. If the defrauded lenders decide that he possesses assets traceable to funds they lent, they may try to pursue those assets. A divorce lawyer should be able to help him figure out how to minimize the chances of any repurcussions, which probably aren't that great to begin with.

[kvierling]

Well thanks for the help everyone. It's been very helpful and if anyone has anything useful to add, I would sure appreciate it. Thanks!