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Fairly common secured asset question

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camaro

Junior Member
What is the name of your state (only U.S. law)? OK

So I have joint responsibility on a car with my ex wife. Let me also say the divorce was simple. As simple as you keep your debts, I keep mine. The divorce decree specifically stated her Sonic was hers and my 2015 Optima is mine.

The question. Does that release me from the obligations of her car, the Sonic? If not, would I file her car, the Sonic, in my Chapter 7?

Anyone familiar with this? Btw, it does show on my credit report if that makes a difference.
 


justalayman

Senior Member
The question. Does that release me from the obligations of her car, the Sonic? If not, would I file her car, the Sonic, in my Chapter 7?
No it doesn't release you from anything.

Filing bankruptcy would relieve you from that debt. What you do is entirely up to you.
 

camaro

Junior Member
Thanks for the reply

That doesn't make sense. If the decree states specifically that the she is solely responsible for the Sonic. Seems like I'm release from any obligations. I figured since I'm a cosigner, whether or not the decree said who's is who's, they'd be able to come after me still. Anyway. Thanks for the reply. As good measures I'm including every open account on my credit report as well as other accounts not listed there, of course.
 

justalayman

Senior Member
That doesn't make sense. If the decree states specifically that the she is solely responsible for the Sonic. Seems like I'm release from any obligations. I figured since I'm a cosigner, whether or not the decree said who's is who's, they'd be able to come after me still. Anyway. Thanks for the reply. As good measures I'm including every open account on my credit report as well as other accounts not listed there, of course.
The decree can't override your contract with the lender. If the decree says she is responsible, if you had to pay any money towards the car you could seek reimbursement from your ex as your divorce contract controls the issues between you and her. It does not and cannot release you from your obligation to the lender as the lender was not a party to your divorce. The court cannot act towards an entity that is not a party to the action in front of them.
 

adjusterjack

Senior Member
Your divorce decree is an agreement between you and your ex-wife. It is only binding on you and your ex-wife. The lender is not a party to the agreement and (in the absence of a bankruptcy) the decree doesn't cancel your contractual obligation to the lender nor does it prevent the lender from coming after you if your ex defaults. The decree would allow you to seek indemnification from your ex if you had to pay.

Your bankruptcy, however, would discharge your debt to the lender.
 

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