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klmph · Apr 15, 2006, 08:22 PM

In our divorce agreement, my X kept a car that I was the primary loan-holder on. In the last 6 months he has paid the payment late three times(this month's payment is also late). These late payments are showing up on my credit report and will cause me no end of grief very quickly. Due to an extremely low income, I qualify for a housing program (am currently living in one 10ft by 12ft foom with my 3 kids) However, I cannot qualify for this program if ANY additional items show up on my credit between now and August. I have the opportunity to sell the car and get out from under the loan.Is there any legal reason why I cannot take the car back into my possession and sell it.How should I protect myself from a lawsuit. Does his failure to pay the agreed upon bill negate the divorce decree?

Thanks,klmph

fredg · Apr 16, 2006, 04:46 AM

HI,
Is the car in your name? If so, sell it, and get what you can.
No, this will not negate the Divorce Agreement. If he is supposed to be making payments, and isn't, you can go to court, protest the fact he isn't following the Divorce Agreement.
I did not realize that late payments had an affect on credit ratings. As long as the payments are made, I don't think it should be affecting that. If it is, it should be removed from your credit rating after the payment is made.
I do wish you the best, and good luck.

ScottGem · Apr 16, 2006, 06:18 AM

Late payments certainly do have an affect on credit ratings. Creditors can report any payments more than 30 days late. Most do, some don't. ANY blemish on payment history will have an affect on credit ratings.

You are pretty much in a tight spot here. Since your name is on the loan, you are responsible for payments, regardless of who owns the car. I don't think you can just go and sell the car since it was specifically mentioned in the divorce agreement. I would consult your Divorce attorney. You will probably need to go back before the judge and have the agreement amended so either he has to pay off the loan or forfeit the car.

Fr_Chuck · Apr 16, 2006, 10:13 AM

This is the issue, if the divorce decreee, and property settlement gave him rights to the car and ordered him to pay the payment, then you can take him back to divorce court to have him re-ordered to pay and perhaps be found in contempt of court.

You can not take the car back if the divorce decree gave him the car.

Just an note, keeping the debt and letting them have the property is about the worst thing you can do in a divorce. Of course he will pay late and ruin your credit, and it is almost imposible to force him to do anything if it is thought he divorce decree.

You will need to go back to divorce court andhave this issue cleared up.