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Stupid Question

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ellenpossible

Junior Member
What is the name of your state?California
My divorce was final on Aug 2001. My ex wife was given the house and I was left responsible for a bank loan. I removed her name from the loan and have since paid it off. She recently filed for bankruptcy and listed that loan. If the divorce decree removes her liability can she do that. What recourse do I have with the financial institution for giving her account balance information, when I removed her name from the account.
 


HomeGuru

Senior Member
ellenpossible said:
What is the name of your state?California
My divorce was final on Aug 2001. My ex wife was given the house and I was left responsible for a bank loan. I removed her name from the loan and have since paid it off. She recently filed for bankruptcy and listed that loan. If the divorce decree removes her liability can she do that. What recourse do I have with the financial institution for giving her account balance information, when I removed her name from the account.
**A: what?
 

nextwife

Senior Member
So ex has filed bankrupcy, and among her list of creditors is the lender that had the mortgage on the house she was granted in the divorce? And the listed mortgage is really paid off and released?
 

LdiJ

Senior Member
ellenpossible said:
What is the name of your state?California
My divorce was final on Aug 2001. My ex wife was given the house and I was left responsible for a bank loan. I removed her name from the loan and have since paid it off. She recently filed for bankruptcy and listed that loan. If the divorce decree removes her liability can she do that. What recourse do I have with the financial institution for giving her account balance information, when I removed her name from the account.
Ok...you stated that your ex recieved the house and you were responsible for a bank loan from which you removed her name and subsequently paid off.

If the bank loan was unrelated to the house, then your ex (or her attorney) could be simply playing it safe because they may not have the knowledge that you actually removed her name from the loan and paid it off. Therefore them including it in the bankruptcy may just be a safety measure. If that is the case then its nothing for you to be concerned about.

Even though a divorce decree removes someone's liability to a debt, the creditors are not parties to the divorce and are not bound by the divorce. Therefore even if you were held responsible for a debt in the divorce, if you defaulted a creditor could legally go after her...and WOULD.

I also need to warn you that if she is declaring bankruptcy against any debts that were joint, and that the divorce made her liable for (ie the home mortgage)...and she hadn't refinanced those debts in HER name only....then the creditors can legally go after YOU for repayment. If she also lists you as a creditor in the BK...then there isn't squat you can do about it.
 

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