Wife's Liability as Cosigner After Husband Left the Country With an Auto Loan Balance

AlexandreaMarane · #1 01-17-2009, 11:04 AM

My question involves a consumer/family law issue in the State of: Florida

In the process of a divorce (Florida), I cosigned an auto loan, husband Primary. We separated (not legally). He made the payments then decided to leave to South Africa...told me he surrendered the vehicle & satisified the loan. My credit stated Repo $0 balance. did not see any liability issue...

then..

no letters, no contact. Checked credit again & found ONE agency reported acct closed/transferred. $5000 balance remaining after vehicle sold at auction. NO notification. Still $0 balance on credit report. Collection agency assumed $5000 & charges interest. $11,000!

How do i protect myself in case this haunts me at a later date & being he may not return from South Africa- I am the Target as the cosigner? Do I need to file docs prior to filing for a divorce?

Thanks so much.

OhMy · #2 01-17-2009, 12:25 PM

Quoting AlexandreaMarane

My question involves a consumer/family law issue in the State of: Florida

In the process of a divorce (Florida), I cosigned an auto loan, husband Primary. We separated (not legally). He made the payments then decided to leave to South Africa...told me he surrendered the vehicle & satisified the loan. My credit stated Repo $0 balance. did not see any liability issue...

then..

no letters, no contact. Checked credit again & found ONE agency reported acct closed/transferred. $5000 balance remaining after vehicle sold at auction. NO notification. Still $0 balance on credit report. Collection agency assumed $5000 & charges interest. $11,000!

How do i protect myself in case this haunts me at a later date & being he may not return from South Africa- I am the Target as the cosigner? Do I need to file docs prior to filing for a divorce?

Thanks so much.

There is no good news here. Yes a $5000 debt can turn into $11,000 by the time you add interest, fees, costs etc.

As a cosigner you are fully responsible for the debt. Divorced, not divorced, makes no differience. If you cosign a loan for a perfect stranger the results are still the same. You are responsible for every penny of that loan.

Betty3 · #3 01-17-2009, 10:02 PM

That's the problem co-signing a loan for someone. If they (primary) doesn't pay, you as co-signer are responsible for any balance due.

AlexandreaMarane · #4 01-18-2009, 07:18 AM

Quoting Betty3

That's the problem co-signing a loan for someone. If they (primary) doesn't pay, you as co-signer are responsible for any balance due.

Thank you. Prior to file divorce docs it seems imperative to include this liability...i understand I am responsible however if I file a civil suit will it not assist my case if the liability is included in the divorce? and he signs as his liability in the financial affidivait?

atleast if he decides to venture back to the States I may see some of the monies returned? The longer I wait to settle this $11,000 the more interest accrues...its strange I have never been contacted & the collection co is not reporting to my credit?

If I have a Family (divorce) & civil case will it appear as a judgement? Is there anyway to garnish his wages if he returns to US?

I appreciate your assistance.

seniorjudge · #5 01-18-2009, 07:39 AM

The creditor was not a party to the lawsuit between you and your husband and is not affected by it.

AlexandreaMarane · #6 01-19-2009, 01:22 PM

Quoting seniorjudge

The creditor was not a party to the lawsuit between you and your husband and is not affected by it.

correct, thanks for the response. I spoke to a Florida Lawyer today, he adivsed me of the following: The Florida Statue of Limitations for a judgment is 5 years. The opening date of the loan Oct 2002, last payment ex made in Sept 2005. Regardless if Sherman Financial bought the debt... the statue is based on the LAST date of payment on the original note-Sept 2005. If no judgment is filed by Sept 2010 (next year) I am protected on A JUDEGMENT. However, Consumer Affairs & Legal Aid is closed today as I NEED to find out the Statue of reporting to my credit?

if anyone needs assistance in Florida;

Consumer Affairs: (954) 765-5355
Legal Aid: (305) 576-0080

seniorjudge · #7 01-19-2009, 01:36 PM

The statute of limitations is an affirmative defense.

Google.

It won't work in your favor unless you take action when you are sued.

AlexandreaMarane · #8 01-19-2009, 01:37 PM

Quoting seniorjudge

The creditor was not a party to the lawsuit between you and your husband and is not affected by it.

The creditor is not responsible & not affected. True.

Florida attorney advised me of this as well: It is Imperative to ensure the Liability is included in the Financial Affidavit in Florida- File Uncontested Divorce w/assets & liabilites. Ex is not denying the responsible he just isn't going to pay it! What this will do is give me settlement leverage...

Cavalry Portfolio buys Ford Credit debt & collects on outstanding auto loan balances. Cavalry will offer a Single Party Release Settlement. The cosigner settles HALF of the monies due & the account will be considered "Settled with no Further obligation". They RETAIN the right to collect the remaining balance from the Ex...

Ur credit shows balanced paid, u settle for HALF the amount & ur Released from future obligation!

Also, The Financial Affidavit will be sent to the credit agencies & give an explanation to his debt that He signed in the Affidavit. Helpful...

OhMy · #9 01-19-2009, 04:08 PM

Quoting AlexandreaMarane

The creditor is not responsible & not affected. True.

Florida attorney advised me of this as well: It is Imperative to ensure the Liability is included in the Financial Affidavit in Florida- File Uncontested Divorce w/assets & liabilites. Ex is not denying the responsible he just isn't going to pay it! What this will do is give me settlement leverage...

Cavalry Portfolio buys Ford Credit debt & collects on outstanding auto loan balances. Cavalry will offer a Single Party Release Settlement. The cosigner settles HALF of the monies due & the account will be considered "Settled with no Further obligation". They RETAIN the right to collect the remaining balance from the Ex...

Ur credit shows balanced paid, u settle for HALF the amount & ur Released from future obligation!

Also, The Financial Affidavit will be sent to the credit agencies & give an explanation to his debt that He signed in the Affidavit. Helpful...

Wow great information, too bad it is NOT correct.

No matter what your divorce says, it is will not matter to Ford Credit. You are responsible for every penny of any loan that you sign for. As seniorJudge noted, the lender is not interested in your arrangements with your ex or anyone one else.

What it comes down to is this;

You signed the loan and you will be held responsible for every penny of it. This may not be the information you want to hear but this is how it works.

AlexandreaMarane · #10 01-20-2009, 05:29 PM

Quoting OhMy

Wow great information, too bad it is NOT correct.

No matter what your divorce says, it is will not matter to Ford Credit. You are responsible for every penny of any loan that you sign for. As seniorJudge noted, the lender is not interested in your arrangements with your ex or anyone one else.

What it comes down to is this;

You signed the loan and you will be held responsible for every penny of it. This may not be the information you want to hear but this is how it works.

First of all Widsom does not include RUDEom

Actually, I JUST SIGNED THE SETTLEMENT and ONLY HAD TO PAY HALF of the remaining balance of the LOAN. IT IS CORRECT, Sorry if it is not the norm however times have changed. Yes, Lawyer reviewed the docs & SINGLE PARTY RELEASE is CORRECT. Thanks so much.