[MrsT223]

My question involves an auto loan or repossession in the State of: Michigan
My husband was divorced in July 2004. He was listed as the primary and wife at the time was co-signer on the loan. (The car was hers) The car was repossessed from her in 2007. In the divorce agreement it was ordered that what ever possessions each party had THEY would be responsible relieving the other person of the debt. The bank will not accept this. The ex-wife made a payment arrangement with the bank and has been faithful in paying. With the high interest rate it would take her 30 years to pay off the loan. Although she is paying each month the bank is trying to also get payments from my husband. We want to by a house and are fearful the bank would come after us for our assets. The ex-wife does not have good enough credit to get a loan and refinance in her name only. The bank will settle for half the amount owed but she can't afford even that much. How does the statute of limitations work in the state of Michigan? What can we do to protect ourselves in this situation?

[M'sta Mikey]

If she defaults on the loan, they will come after the primary, your husband. Unfortunately, that is the downfall of co-signing for a loan or joint property that cannot be divded (he obtaining a loan in her own name). If she was late in the payments and the vehicle was repoed, then it's reflected on his credit report also. Also, the Statute of Limitiation plays not part in this.

If she fails to pay, he will be responsible. His option is to take the vehicle, pay off the balance and move forward.

[dreamspark]

Every man shud have a wife like this

http://www.ceveni.com/2009/04/having...ome-times.html