debt collection

[cooper123]

Minnesota

MN - My ex let the car I co-signed on go to collection and did not tell me. I just received a letter from a debt collector stating I owe the remainder plus many fees - $23K. She got a letter but did not respond in 30 days. I did respond in 30 days through a firm asking the debt collector "to investigate the basis for the debt" within 30 days and respond in writing. I am just out of this 30 day period.

Should I just wait until I get the Validation response?
When is the best time to negotiate?
Should I negotiate with the creditor Mercedes Benz Financial?
Or wait and see what the collector does?

[latigo]

Unless you are judgment proof, MBF will undoubtedly want the entire $23K.

What I would do is to hire an attorney familiar with Minnesota’s Commercial Code and have him request MBF to provide copies of all related documentation showing how it disposed of the car, to whom, etc., And how it arrived at the deficiency.

Because, “Every aspect of sale including method, manner, time, place and terms must be commercially reasonable.” (Minn. Statutes Section 168A.22)

The attorney would know the interpretation the Minnesota courts have placed on that language - “commercially reasonable” and if MBF complied. Because proof of compliance with the Code is a condition precedent to recovering a deficiency judgment. (At least in my state which has adopted the same uniform code.)

Also you would want to know if MBF complied with the notice of foreclosure of the security agreement were properly met. And whether those notice requirements apply to you as a guarantor.

Then if the obligation is not settled and MBF files for a deficiency judgment, you will want to cross-claim against the ex; or if she is not named as co-defendant, then interpleader her as the primary obligor.

The purpose being to get judgment back against her for whatever MBF recovers against you.

I know its water under the bridge, but how did you happen to get in this fix? She is awarded an expensive automobile and you are left hanging hoping that she pays off the loan. Surprise, surprise! She didn’t!

Your divorce attorney dropped the ball in my considered opinion. Why wasn’t she required to refinance the car or have it sold?

Sax