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  1. #1
    Join Date
    Mar 2007
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    9

    Question Car Loan and Divorce Decree in Georgia

    My ex-husband and I traded in his car (a car he was upside down on a few times over) for a newer car that would hold its value better. We traded in an eclipse for a honda civic. The payment was only going to be a few dollars more and when we got ready to resell, we could get more money from it. That was the idea. We traded in a car in which he was the only one on the loan to a car that I was the primary and he was the secondary. (I had better credit than he did).

    We ended up getting divorced and because the car was orginally his responsibility based on old loans he had, I didn't think I should have to pay for his past mistakes, so when we got divorced, it was written into the divorce decree that he would take possession, and wouldn't hold me responsible financially for the vehicle. It also stated that when the loan was paid off or refinanced, I would sign any documents to transfer the title to him.

    Well, he couldn't make the payments. Honda financial called me up telling me the car was a few months behind on the payments. I called my ex and he said he would take care of it. This went on for a while and he eventually said he couldn't afford the vehicle anymore. The vehicle went up for collections and the collection agency started calling me. At the time I was having a high risk pregnancy with my new husband and I asked my step-father to handle the situation because I couldn't take the stress. The amount we were in default for was around $12,500. My step father was able to negotiate with the collection agency for around half that. My stepfather (and the collection agency) discussed the offer with my ex and he said he still couldn't pay.

    It ended up that I paid 4000.00 of the 6000.00 owed and my ex put around 2000.00 on his credit card. In all intents and purposes, the issue is resolved.
    My question is, because it was written in the divorce decree that I was not to be hold financially responsible for the debt incurred by the vehicle, can I go back and sue him for the 4000.00 that I paid? (as a side note: because the car was repossed and defaulted on, it has negatively impacted my credit. I had excellent credit before this and now I have a repo/default up for collection on my credit report. I tried to re-finance my current vehicle but because of what my credit report said, I had to pay a higher rate than what I would have if I hadn't have had that on my credit report. Also becuase this was considered a "financial trouble" issue, I ran the risk of loosing my security clearance at work and possibly my job.) What are my options here?

    Thanks

  2. #2
    Join Date
    Jul 2006
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    Default Re: Car Loan/Divorce Decree in GA

    Q: My question is, because it was written in the divorce decree that I was not to be hold financially responsible for the debt incurred by the vehicle, can I go back and sue him for the 4000.00 that I paid?

    A: Yes. You have two options: First, file a motion to have him found in contempt of court under the judgment in the original lawsuit. Or, second, sue him in small claims for the dollar amount of your actual and direct damages.

    If he doesn't have any money, then neither option will do you any good.

  3. #3
    Join Date
    Mar 2007
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    9

    Default Re: Car Loan/Divorce Decree in GA

    Can I garnish his wages? I know he has a job but I also know that he doesn't pay his other bills either, like his student loan, etc.

  4. #4
    Join Date
    Mar 2007
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    9

    Default Re: Car Loan/Divorce Decree in GA

    You said I could sue for actual and direct damages. What would be considered direct damages? the time and stress of the event? the negative reporting to my credit report? court costs?

  5. #5
    Join Date
    Jul 2006
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    Default Re: Car Loan/Divorce Decree in GA

    Q: Can I garnish his wages? I know he has a job but I also know that he doesn't pay his other bills either, like his student loan, etc.

    A: Yes, you can garnish his wages once you get a judgment against him. Of course, as soon as the garnishment hits, he will quit his job.


    Q: You said I could sue for actual and direct damages. What would be considered direct damages? the time and stress of the event? the negative reporting to my credit report? court costs?

    A: This is a pretty clear and simple concept. You add up the amount of dollars you have actually lost due to his actions. Time, stress, negative reporting, etc. are consequential damages and you cannot recover those in small claims court (this is a very general statement). You would have to sue in regular court for punitive damages and it is very unlikely that you would get any award for time and stress; you may possibly get some damages for negative reporting, but it would also probably cost you more that what you would get.

  6. #6
    Join Date
    Mar 2005
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    Michigan
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    28,906

    Default Re: Car Loan/Divorce Decree in GA

    The most efficient way to enforce a provision of a divorce order is normally to bring a post-judgment action before the divorce court which issued the order.

  7. #7
    Join Date
    Jul 2006
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    Default Re: Car Loan/Divorce Decree in GA

    Quote Quoting aaron
    View Post
    The most efficient way to enforce a provision of a divorce order is normally to bring a post-judgment action before the divorce court which issued the order.
    Agreed.

    This way, if the guy is found in contempt and doesn't pay up, he could go to jail!

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