Question

How do I get my name off a co-signed car loan?

I co-signed on a car loan right before I separated from my husband and later divorced. He has a Ford Explorer of which he hasn't made the payment on for the last 4 1/2 months. No one will allow him to refinance because of the defaulted payments. During the divorce it was understood in court that the Ford would be his responsibility. So how do I get the finance company to see that and not go after me for the amount due? And what if he files bankruptcy will I then be liable for the bill? HELP PLEASE it's a lot of money.

7 years ago - 13 answers

Best Answer

Chosen by Asker

The contract you signed as co-signor supercedes the divorce decree. If you co-signed, you will be responsible until the truck is paid for. You may want to consider talking to an attorney about taking posession of the truck and selling it.

7 years ago

Other Answers

You can't remove your name. I know this is not the answer you were looking for but it's the honest truth. The only thing you can do is sue him for the unpaid amount. But it might be hard to get a judgement against him unless you signed an agreement with him stating the terms of you co-signing for this loan.

by credit_help - 7 years ago

your screwed, you need to pay off the loan

by tim w - 7 years ago

you signed you pay

by sizzy1969 - 7 years ago

Your Liable for the debt regardless. Try to get the truck . Then find out what its worth. Then decide whether to sell it to pay off the loan or if you want to keep it talk to the finance company and tell them the truth they may refinance you. Whatever you do, do it quickly, like today because meanwhile every late payment is destroying your credit just as it is his.

Source(s)

by jgunslingerj - 7 years ago

Most people that get divorced make this mistake. Lenders do not care what your divorce decree says, unless your ex-husband refinanced the vehicle in his name only (like your lawyer should have made a condition of the divorce) you are still responsible for the loan if your ex defaults.

And if he files for bankruptcy, they will come after you for it.

As a finance manager for a car dealer I see this so many times every month it makes me sick. But, it's the law.

Depending on how much is owed on the vehicle verse what it's worth, you might want to approach the lender and see if you can make a deal where they rewrite the loan in your name only. You would have to get the vehicle from your ex-husband, but at least it would stop your credit being trashed.

Source(s)

by spifiman1 - 7 years ago

Provide a copy of the Divorce Decree spelling out his obligation for the auto to the Auto Company; and it might be better if you have the Lawyer send it to them.

by mortgage man - 7 years ago

I'm sorry to tell you but I found out the hard way, and then through my job as a certified credit counselor, but a divorce decree does NOT mean a thing to the original credit agreemeent. I don't know why attorney's even write it. The original agreement are what will stick in court and what I was told by the IRS is that they take divorce decrees and chew them up for breakfast and spit them out for lunch!
Pretty scary huh? You have all my empathy!

Source(s)

by sher9441 - 7 years ago

The best way to solve is to go to a small claim court. You know like that one on TV......Judge Judy, Judge Joe Brown, etc. Make sure you have all returned checks, receipts, documents.
That's the only way you can go. Some lawyers do provide a free of charge consultations (you might want to call them). Usually they don't charge if they don't win the case for you.
Good luck!

Source(s)

by Pilot - 7 years ago

It depends on what you mean by "understood in court." If the court issued a decree stating that he was solely liable for the loan, you would have to show that to the bank.

Typically, to get your name off a co-signed loan, the lender has to agree to it.

Is the Explorer worth more than the loan amount? If it is, you may be able to negotiate something with the bank without your husband's knowledge. You should talk to the bank about the matter.

by garyg7 - 7 years ago

unfortunately the divorce decree has no barring on the loan, they have no legal duty to remove you

if you ex is hell bent on ruing his credit and taking you down, you will need to make payments on the car and sue the ex to get possession of the car to sell and release the note

by goz1111 - 7 years ago

You're screwed. The judge should have ordered the truck sold as part of the divorce. You cannot have yourself removed since you are an equal owner in both the truck and the responsibility by signing on the loan in the first place. The lender has all the legal rights in the world to come after you because that is what you agreed to by signing the contract for the truck in the first place. You need to contact an attorney that will take you both back to court to order him to sell the truck and pay off the lender plus all late fees. As far as the late payments that are already there your credit is also screwed for the next 7 years. If he declares bankruptcy that truck cannot be included because it is a joint loan. Unless you file with him he and you will still owe on that truck. Never co-sign anything with anyone.

by Navy Sailor - GAI - 7 years ago

I am sorry, but the answeer is not the answer you want to hear, if he does not make the payments, it is up to you to make them. You can always take the matter up with the court that he isn't making the payments, but the loan co doesn't care who makes the payments as long as someone does. If you fail to make the payments, that is on you an your credit rating.
When you say "understood" is it in writing???If not, looks like you've been outsmarted..

by mdk - 7 years ago