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Spousal Consolidation Loans Recourse Student Loans

Discussion in 'Student Loans' started by rchristopher71, May 19, 2015.

  1. rchristopher71

    rchristopher71 Law Topic Starter New Member

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    My ex-wife and I are co-borrowers on a Spousal Consolidation Loan from 2000 that is at 8.25%. I don't see any action by congress that will allow these loans to be split.

    I am able to pay my "divorce decree ordered" 50% but my ex-wife and her current husband are not currently in the position to do the same.

    Can I work with a lawyer to draw up a document that states I have paid my half, gives me recourse against my ex-wife if she fails to make the appropriate payments on the remaining balance and attaches to her estate for immediate payoff of her owed share should anything happen to her and/or her husband?
     
  2. army judge

    army judge Super Moderator

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    A loan is a contract.
    Contracts, so far, aren't able to be interfered with by law or act of congress.

    Bob and Sue are married.
    Bob and Sue borrow $100,000 from Big Bucks Bank.
    Bob and Sue divorce three years later.
    The divorce decree says Sue is to take over the entire loan, and Bob is off the hook.
    Sue fails to pay on the note, because she lost her job and commits suicide.
    Big Bucks Bank comes after Bob, and obtains a judgment against him.
    Big Bucks Bank then levies against Bob's wages.

    All perfectly legal, as the judge has no power to order Big Bucks Bank to let Bob off the hook.

    You can hire a lawyer, draft a contract with whatever verbiage you deem appropriate.
    Big Bucks Bank is unaffected by such a document.
    You, however, already have recourse against your former spouse.
    You can take her back before the judge that signed your decree, and seek a contempt ruling against her.
    Her current husband owes you nothing.
    He's no more responsible for her bills, prior to their marriage, than you would be for any woman you might marry.

    Sorry, the issue is between you and your former spouse ONLY.
    If she's broke, she's broke, plus all she would have to do is declare bankruptcy anyway.
    You could also seek a bankruptcy filing yourself.
     

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