Loan Co-Signer Obligations After Bankruptcy

Can a Co-Signer Be Liable if the Primary Borrower is Bankrupt?

I have a question. My wife filed bankruptcy after we were divorced.

I had paid my half of a truck that was leased, she was the primary borrower and I was the secondary.

I am told that even though she filed after we were divorced I am responsible for this debt.

Is that correct?

I paid my half of the lease in full toward the end of the lease after we were divorced and then she filed bankruptcy.

Any advise you could provide would be much appreciated.

David

---

Unfortunately this is probably true. You co-signed the lease papers and are as responsible as your ex-wife for the debt. If she is unwilling or unable to pay it, the lender has a cause of action against you for the full amount.

Check your divorce papers to see how assets and liabilities were divided. If she was responsible for this debt in the divorce decree, consult the lawyer who handled your case and see if you have any recourse.

You might also want to check out her bankruptcy discharge to see what it says about the debt. Although it is likely only your wife was let off the hook, perhaps the debt was disposed of in such a way that the creditor has no action against you, as co signer.

Finally you also might want to consult a lawyer who specializes in consumer debt issues. (Call your local bar association’s Lawyer Referral Service for names.) He might be able to help you get the debt erased or at least reduced.

  | Top | Questions | Home |