CAN THEY TAKE MY CAR IF HE WONT PAY??

http://smilecwm.tripod.com/net/bandit.gif In my divorce decree in Texas, I was awarded our car but the loan is in my exhusbands name. I have continued to make the payments on the vehicle as the decree states but I have fallen behind on the payments since my ex has gotten 6 months behind in child support payments. The bank is calling to collect from me. Does the bank have any recourse on me or should it only be with the ex since he alone signed the note???

BIG BLONDE VEGAS said:

http://smilecwm.tripod.com/net/bandit.gif In my divorce decree in Texas, I was awarded our car but the loan is in my exhusbands name. I have continued to make the payments on the vehicle as the decree states but I have fallen behind on the payments since my ex has gotten 6 months behind in child support payments. The bank is calling to collect from me. Does the bank have any recourse on me or should it only be with the ex since he alone signed the note???

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My response:

The bank or finance company ALWAYS owns the car until such time as it's paid in full. The car is the bank's collateral for the money that was used to buy the car in the first place.

They will take "their" car from wherever it is, and from whomever has it in their possession, custody or control. They will then screw up his credit rating because the loan is in his name.

They will then sell the car for whatever they can get, and apply that money to the balance on the loan. If, after doing so, there is still an outstanding balance on the loan, they will go after whomever signed the loan papers for that balance.

IAAL

I guess that maybe I didn't word my question correctly. What I really want to know is if the bank has the right to collect from me the late payments when he alone is the maker of the note?? My understanding is that they cannot turn to me for repayment since I am not a party on the loan. My exhusband would have to take me to court for possibly contempt (?) for not making the payments. Am I correct in my thinking??

BIG BLONDE VEGAS said:

I guess that maybe I didn't word my question correctly. What I really want to know is if the bank has the right to collect from me the late payments when he alone is the maker of the note?? My understanding is that they cannot turn to me for repayment since I am not a party on the loan. My exhusband would have to take me to court for possibly contempt (?) for not making the payments. Am I correct in my thinking??

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My response:

I'll repeat myself:

"They will then sell the car for whatever they can get, and apply that money to the balance on the loan. If, after doing so, there is still an outstanding balance on the loan, they will go after whomever signed the loan papers for that balance."

The bank can only "go after" him, because they dealt with him on the contract. Your husband, in turn, must go after you in court.

IAAL