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nkstein · Nov 14, 2006, 12:33 PM

My husband and I have just had our joint account garnished/levey yesterday and all the bank would give us was a phone number that was only in operation from 8-5pm. They would not tell us any details only that the account had been garnished.

Today we have found out that is for collection of a car loan that his ex-wife let be repossesed back in 2002 after they were divorced. Per the divorce decree the car was hers; however, my husband was still on the loan as a co-signer. We have not received any notification of ANYTHING until our account showed up with zero balance yesterday. Is this legal?? Why wasn't her account garnished? Can we collect this money from her?

Thank you!

mr.yet · Nov 14, 2006, 12:49 PM

Contact you attorney who handled the divorce, the ex should be respondible for the car as per court order divorce settlement.

wildcatgirl · Nov 14, 2006, 02:55 PM

Originally Posted by mr.yet

Contact you attorney who handled the divorce, the ex should be respondible for the car as per court order divorce settlement.

This is true, as long as you have had it written in the divorce decree that the ex was responsible for the car. But, as I have found with most lenders, they not very understanding with these situations. Typically after a divorce, the spouses should either try to refinance the cars that they signed with each other (to have each other's own loans) on or try to trade them off and get a new car loan just in their name alone. Creditors tend to believe that if you co-sign for someone, you should make sure they are going to be fiscally responsible for that debt. I know it doesn't sound fair, but I've heard this a lot of times when trying to get someone approved.

Fr_Chuck · Nov 14, 2006, 04:23 PM

Ok, this is a misconception about divorce, given by the experts so far.

If you are a co-buyer or a co-signer a divorce decree can demand one party be responsible, but a divorce decree can not over rule a judgement.
The creditor can still come after you, and you will have to go to divorce court and sue for the money to be paid back to you.

If the court ordered the other party as stated to re-fiance, and they did not, still all you can do is go back to court to have them held in contempt of the court order.

And no the borrower would have received all of the notices, you would not have. That is why you never co-sign for anyone , ever , period.

So what they did is legal, in all of the states I have been at, and is common procedure.

Dr D · Nov 14, 2006, 04:31 PM

Yes, the ex-wife should be responsible for the debt; but since they both signed the note, the creditor could care less what the divorce decree says. They can, and will go after whoever can pay. Your husband can sue the ex for violating the terms of the divorce, but she is probably broke. He may have some recourse against the creditor for improper service, since they had to get a judgment against him prior to garnishment.