Liability Question

[mattpeg]

I'm in California. My question is somewhat complicated but here it goes. In 2000 my fiance and I got a car loan. We broke it off amicably about three years ago and we each took one of the cars, both of which had loans. She recently married and her husband is worried that if I totalled the car and had damges to other property that was beyond what I could pay that they could take his house. Is this true? She does not have her name on the title of the house. Does this matter? Thanks in advance.

-Matt

 

[lwpat]

I am assuming that both of your names are on the titles and also on the loans. If you or she has an accident in which the liability exceeds the insurance then there could be a judgement entered that would be collectible under the laws of the particular state. The other situation would be if the vehicle was totaled the insurance would probably not cover the remaining loan amount.

This really needs to be straigntened out now before it becomes even more complicated. You need to sell each other the respective vehicles and each arrange for your own loan.

 

[mattpeg]

re:

Ok. She wrecked the car she had months ago. She is still paying off the remaining loan amount. My credit isn't very good and my loan applications are being rejected. I need a car for my 30 minute commute to work or I'm screwed. Not a lot of options so I am asking if I got into an accident could her new husband's house be up for grabs to settle property damage claims?