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In 2007, my husband and his mother purchased a car together. In 2009, his mother filed for bankruptcy. Now, Debt collectors are calling for payment? What should he do? How will this affect our assets as a married couple? Thanks!
9 ANSWERS
If he co-signed, he is liable for the payment. He shoudl either pay the bill and work something out with the creditor or research other alternatives, such as bankruptcy. Assets of the marriage are protected by state law and that varies greatly from state to state so it would be wise for you to seek counsel from a local attorney for guidance.
Answered on Aug 05th, 2011 at 4:35 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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When there is a co-signer the non-filing person is liable for the debt.
Answered on Aug 05th, 2011 at 3:18 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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She discharged her obligation but your husband still owes on the car. I am happy to discuss your options with you.
Answered on Aug 05th, 2011 at 11:33 AM
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The collectors can sue your husband and come after your combined assets. Either you settle with them or prepare to deal with an eventual lawsuit. You don't necessarily have to pay the full amount of the debt, you can settle for less, but your husband is very likely to get sued, and your family assets could be affected.
Answered on Aug 05th, 2011 at 10:31 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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He should either pay for the car, since he signed for it.along with her,or file bankruptcy. A good lawyer can help you (him?) figure out how to keep your assets, depending on what you have.
Answered on Aug 05th, 2011 at 7:22 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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If he co-signed for the loan, then he is personally liable for it. He is left with two options: pay the loan or file for bankruptcy and discharge the debt. The creditors can file liens to get what is owed to them.
Answered on Aug 05th, 2011 at 6:57 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Simply, the bank can repossess the car, sell it and collect from your husband the difference between the sales proceeds and the balance owed on the car loan plus costs. If your husband does not pay then the creditor can garnish his wages, levy your bank account and put a lien on any real estate you own. The creditor cannot proceed against his mother because she filed for bankruptcy. Any money in the bank in any account with your husband's name can be levied. Although all you have is community property and can be taken to satisfy your husband's debt, most likely the creditor will go after his wages, any bank accounts on which your husband appears as an owner and file a lien against any real estate in which your husband has title. Your husband is liable for 100% of the debt and there is nothing he can do about it but pay or settle it for less (except file bankruptcy himself).
Answered on Aug 05th, 2011 at 6:44 AM
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Since your husband co-signed the loan with his mother he is equally liable for any default on the payment of the loan. The creditor can sue and obtain a judgment against your husband. From there, the judgment creditor will attempt to collect, including garnishing your husband's wages and seizing funds held in bank accounts. As long as his name is on the asset they are pursuing, regardless of whether yours is also on it, they will have the right to seize it. Your husband is entitled to various property exemptions under NRS 21.090. A detailed discussion of this situation is highly recommended to assure that the information provided in this statement accurately addresses your specific legal issues. I highly recommend a more detailed consultation with an attorney to fully advise you in this matter.
Answered on Aug 05th, 2011 at 6:42 AM
Glen Edward Ashman
When he cosigned the debt, he agreed to pay it. So he owes it. If he does not pay it, his assets (and his wages) AND your joint assets become targets. Depending on information you did not give he probably either needs to pay it or go bankrupt. He needs to see a lawyer to decide which.
Answered on Aug 05th, 2011 at 6:31 AM