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KristyCh · Jul 22, 2009, 10:21 AM

My boyfriend and his then wife applied for a loan on a boat back in 1985. On divorce in 1998, she kept the boat and agreed to make the payments on the loan. She then hid the boat with relatives and declared bankruptcy naming this loan as part of it. After 10 years in 2008 the finance company sent a garnishment to my boyfriend for $19,000 from what was originally a $6000 loan! He is flabbergasted at not being notified sooner as he had no idea why they waited so long to tell him she had defaulted and the interest has built up astronomically. The courts found in favour of the finance company as my boyfriends name was on the original application. He doesn't have this kind of money but doesn't want to ruin his credit by declaring bankruptcy. My question is, is there a statute of limitations on how long they can keep coming after him for this money?

this8384 · Jul 22, 2009, 02:01 PM

SOL varies by state and it begins on the date the last payment was made.

Chey5782 · Jul 22, 2009, 02:16 PM

What about the ex? Is the agreement they had purely verbal? Can he take her to court and have her pay?

this8384 · Jul 22, 2009, 02:27 PM

Originally Posted by Chey5782

What about the ex? Is the agreement they had purely verbal? Can he take her to court and have her pay?

Not if she got it discharged when she filed bankruptcy. Someone else was arguing about this same thing on another thread; one person said the creditor had to follow the court order that Party A was supposed to be fully responsible for the loan, someone else said they didn't.

Chey5782 · Jul 22, 2009, 02:45 PM

Well that still doesn't answer my questions. :confused: It just means they argued over it. If the OP and the ex had a written agreement that she would take the boat and make the payments, shouldn't he be able to take her to court and have her ordered to pay it?

I'm very interested in seeing what JKT says or one of the other experts, it doesn't seem fair that he pay interest on this loan if he was never notified by the finance company that the debt still existed.

this8384 · Jul 22, 2009, 02:50 PM

Originally Posted by Chey5782

Well that still doesn't answer my questions. :confused: It just means they argued over it. If the OP and the ex had a written agreement that she would take the boat and make the payments, shouldn't he be able to take her to court and have her ordered to pay it?

I'm very interested in seeing what JKT says or one of the other experts, it doesn't seem fair that he pay interest on this loan if he was never notified by the finance company that the debt still existed.

Judy was the one arguing that the creditor could go after whoever was on the loan, regardless of what the agreement in court was.

I agree, it's not fair... but now it's his responsibility to go after his ex-wife to get the money back.

EDIT: Here's the link to what Judy said-
https://www.askmehelpdesk.com/other-...ml#post1853614

ScottGem · Jul 22, 2009, 03:26 PM

Generally a creditor is not required to accept a transfer of debt as the result of a divorce action.

What I suspect happened is the creditor got a judgment within the SOL and just located your boyfriend's job to serve a wage garnishment. So the SOL probably does not apply.

You said the courts have already ruled against him. What grounds did he use?

He MIGHT be able to sue her and seize the boat, but he really needs to consult an attorney here.

JudyKayTee · Jul 22, 2009, 04:13 PM

The loan company/bank does NOT have to honor any Court orders such as an Order that one party is totally responsible for the loan.

The debt was between 3 parties - the bank, the "ex" and your boyfriend. The Court cannot insert itself into that arrangement.

If one party discharges the debt in bankruptcy the other party is TOTALLY responsible for making the payments.

Again - no Court can change the terms of a Contract if the Court is not a party to the original contract.

(And This8384 knows what she's talking about but thank you for the thumbs up.)

I know it doesn't seem fair but that is the law in all States.

Does that answer your question?

Chey5782 · Jul 22, 2009, 05:24 PM

It still sucks. I suppose it's a good example of knowing your rights before you enter into an agreement with an ex.

JudyKayTee · Jul 22, 2009, 05:26 PM

Absolutely!

KristyCh · Jul 24, 2009, 05:53 AM

Originally Posted by Chey5782

Well that still doesn't answer my questions. :confused: It just means they argued over it. If the OP and the ex had a written agreement that she would take the boat and make the payments, shouldn't he be able to take her to court and have her ordered to pay it?

I'm very interested in seeing what JKT says or one of the other experts, it doesn't seem fair that he pay interest on this loan if he was never notified by the finance company that the debt still existed.

No the debt was not on any of the credit reports for the two main bureaus. That was what was so strange about it and why my boyfriend had no way of knowing about the debt. I think what happened is he applied to a few credit companies when he was buying his car. One of them called back and said that they had uncovered this outstanding amount. I think they then sold this information back to the finance company about where he worked as he was never served with anything until the garnishment hit his workplace. This was certainly a violation of confidentiality but heh, how can you prove it.

JudyKayTee · Jul 24, 2009, 06:16 AM

Originally Posted by KristyCh

No the debt was not on any of the credit reports for the two main bureaus. That was what was so strange about it and why my boyfriend had no way of knowing about the debt. I think what happened is he applied to a few credit companies when he was buying his car. One of them called back and said that they had uncovered this outstanding amount. I think they then sold this information back to the finance company about where he worked as he was never served with anything until the garnishment hit his workplace. this was certainly a violation of confidentiality but heh, how can you prove it.

No, it's not a violation of confidentiality - anyone with access to "certain" databases can find employment. I locate people all the time - and I'm not violating anyone's privacy or breaking any rules.

I understand your position in this and I'd be more than a little upset but, unfortunately, debt collectors are legally able to take whatever means are necessary to collect a debt.

I am confused on one aspect of this - was your boyfriend served with paperwork before the Judgment was obtained against him? (Sorry if this was already asked and answered.)

AK lawyer · Jul 24, 2009, 12:33 PM

Originally Posted by KristyCh

... in 2008 the finance company sent a garnishment... The courts found in favour of the finance company as my boyfriends name was on the original application. .... My question is, is there a statute of limitations on how long they can keep coming after him for this money?

I am confused about the "sent a garnishment" part. The creditor wouldn't do that until after they obtained a judgment.

So it appears the finance company sued him and obtained a judgment. That would have been the time to raise the SOL, if any.