sued for a car loan

[lOCKE]

Hey,

I'm in Arkansas, my fiance is getting sued by a creditor he got a car loan from. IS then Wife, never paid the loan off and when she stopped paying anything else too, the car was repossessed. I do not know what they did with the car. But He never got any letters to collect the money or anything. This loan showed up on his credit report with 8k but now they want 12k. The problem is he never drove the car it was his ex wife and she wanted that car. Is there a way he can get out of it or is he doomed and what can they make him do when he is proven guilty?? He doesn't have anything he barely makes it from one paycheck to the other. And unfortunately he didn't let his then wife sign the damn thing. (Excuse my language)

I'm just wondering what could happen to him.

Thanks,

Locke

 

[Michael Wechsler]

If the loan is in his name then most likely there is trouble. The key is who signed on the loan. If they both signed, then the bank can likely go after both of them or one of them. If his name is the only one on the loan, then it is for him to then go after the ex-wife for the payments not made and not the bank's problem.

The best action here would have been to transfer the car and loan to his wife, if the bank was willing to do so. Additionally, he should have negotiated a notice must be generated in the event of nonpayment by the wife in the event she defaulted on payments and he was required to be a guarantor on the loan. He's still be liable but could avoid the problem later in the game after penalties have been tacked on.

Originally posted by lOCKE
Hey,

I'm in Arkansas, my fiance is getting sued by a creditor he got a car loan from. IS then Wife, never paid the loan off and when she stopped paying anything else too, the car was repossessed. I do not know what they did with the car. But He never got any letters to collect the money or anything. This loan showed up on his credit report with 8k but now they want 12k. The problem is he never drove the car it was his ex wife and she wanted that car. Is there a way he can get out of it or is he doomed and what can they make him do when he is proven guilty?? He doesn't have anything he barely makes it from one paycheck to the other. And unfortunately he didn't let his then wife sign the damn thing. (Excuse my language)

I'm just wondering what could happen to him.

Thanks,

Locke