What IS A CHARGE OFF

My husband co-signed an auto loan with his ex before they were divorced. In the divorce judgement, the CMO awarded the car to his ex subject to all outstanding debt. The finance company repossessed the car and we knew nothing about it. When we got his credit report, There was a charge-off on it for the vehicle.What does this mean and how will it affect his credit in the future? I informed the company of the CMO decision and sent them a copy of the divorce judgement. I have heard nothing from them. Help

[I AM ALWAYS LIABLE]

**** Before posting a question, please check the Questions and Answers listed on the Home Page to see if your question was already covered
or easily search over 155,000 previously posted questions and answers. ****

Use "charge off" as your search term.

IAAL

Dear kjb,

The divorce court is unable to modify third party claims. If he co-signed the loan - he is responsible to pay the finance company the deficiency balance after the repo. Charge-Off or R9 is the worst credit rating an account can reach and impacts his credit greatly.

Now, the divorce decree does provide your husband indemnification against this debt. So after paying the finance company, he may file suit against his ex wife, for the money he was forced to pay, plus any other damages he suffered as a result of her non-payment. You can then enforce that judgment against any assets she may own.

Good luck!


[email]JASON@LEGISLATOR.COM[/email]