My ex-wife has a car that I co-signed for. What can I do to get my name taken off as the co-signer? I heard I could call the finance company and tell them I voluntarly surrender the car back to them. If I do that, how bad will it effect my credit?
My ex-wife has a car that I co-signed for. What can I do to get my name taken off as the co-signer? I heard I could call the finance company and tell them I voluntarly surrender the car back to them. If I do that, how bad will it effect my credit?
it is considered a repossession even if it is voluntary. What you need to do is get your wife to assume full responsibility for the car. Talk to a lawyer to see the best course of action. I personally would do this just to find out how to go about doing this.
BTW is the divorce final? If so what was the decision or agreement as far as real property is concerned? IF the court agreed that she was to keep the car (and the debt) then I believe that you can send a copy of that to the financial instituition with a letter explaining the situation and they may withdraw your name.
If you take your name off the loan then it would be a repo on your credit, don't do it! Just take the chance of her making the payments. If she stops making payments on the automobile you would be held responsible because you signed a contract. The federal law of you making the payments over rides the state ruling that your ex has to pay for it in the divorce. Now if she stops making the payments and you have to make them to protect your credit then you can take her back to state court for breaking the divorce. In this case it could be ruled that she will have to pay you back the money you paid. Sell the car to pay off the loan and/or continue to pay any remaining balance on the loan.
I would make a phone call to the finance company and give them your phone number so they call you if she is late making any payments (your name is on the loan so they will always give you information about it). Then as soon as she is late even one time you can take her to court where a judge can order her to sell the car and pay off the balance or re-finance the vehicle in her own name. I know this works because it is how I got my name off of a home loan that my ex was awarded in court. One late payment was breaking the divorce ruling and a judge told her to re-finance in her name or sell. She could not qualify to re-finance on her own so she had to sell the home.
