Cosigner on loan

[Broncoweb]

My ex wife is on a motorcycle loan that is nearing the end of the loan term in november. While we were married we decided not to get insurance on the bike and subsequently the lender added insurance themselves. The fees and interest from the insurance that the lender added totaled 15k over 2.5 years, stupid mistake I know... Now that the loan is nearing the end there is a 15k balance from the all of these costs that were not originally in the loan. Our divorce decree stated that I would get her name off the loan, however, I have tried multiple times to secure a new loan and could not due to my credit. My question is, Are we both responsible for the balance on this loan? I have made every payment since we separated and I have had the motorcycle insured ever since our divorce. All of the charges were added while we were married, are these all my responsibility? She continues to threaten to take me to court and I dont know what to do. When November comes around if that money isn't paid to lender the loan will then default. I did not know at the time of the divorce that the loan was that far backwards.
Thank you in advance for any help anyone can provide.

 

[adjusterjack]

My ex wife is on a motorcycle loan that is nearing the end of the loan term in november. While we were married we decided not to get insurance on the bike and subsequently the lender added insurance themselves. The fees and interest from the insurance that the lender added totaled 15k over 2.5 years, stupid mistake I know... Now that the loan is nearing the end there is a 15k balance from the all of these costs that were not originally in the loan. Our divorce decree stated that I would get her name off the loan, however, I have tried multiple times to secure a new loan and could not due to my credit. My question is, Are we both responsible for the balance on this loan?

Yes.

If you both signed for the loan when you took it out you are both still bound to the lender. The lender is not a party to your divorce and is not bound by your agreement.

I have made every payment since we separated and I have had the motorcycle insured ever since our divorce. All of the charges were added while we were married, are these all my responsibility?

If your divorce decree says that you assume the debt to the lender then, yes, it's your responsibility to continue paying it.

She continues to threaten to take me to court and I dont know what to do. When November comes around if that money isn't paid to lender the loan will then default.

Then the lender will come after both of you and your ex would have cause to enforce the decree and seek indemnification for whatever damages she suffers.

I did not know at the time of the divorce that the loan was that far backwards.

No excuse. It was easy enough to check. Though, not much you could have done about it.

Best suggestion I can give you is, between now and November, you scrounge up as much cash as possible and try to negotiate a discounted lump sum payoff to the lender rather than leaving them with a bad debt that they might never collect on.

Or, if your ex-wife's credit is as bad as yours, you both might want to consider bankruptcy at the same time.

 

[Broncoweb]

I dont know if this just semantics, but our divorce decree only stipulates that I would get her off the loan, I suppose that implies that I assume the entirety of the balance, I guess i should have gotten a lawyer while we were getting divorced instead of doing it myself. I guess she wins again, ugh sad. Thanks so much for responding I really appreciate it.

 

[adjusterjack]

I dont know if this just semantics, but our divorce decree only stipulates that I would get her off the loan,

Are you sure it says only that?

Were you looking at the decree and quoting it word for word when you wrote that statement?

If you weren't I'd be willing to bet that you aren't quite remembering it accurately.

 

[Broncoweb]

Word for word

 

[Zigner]

Word for word

Your decree actually says "I would get her off the loan"? I doubt that.