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Is it legal to transfer a promissory note to new account without permission?


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

When my ex and I divorced we had a line of credit in both our names. When going through a divorce we explained we wanted new accounts, and that I (the ex wife) would take the balance of our joint line of credit to my new account which also was a line of credit. We thought this happened correctly for years. 6 years later I ran into financial hardship and used a debt settlement program. After a missed payment on my line of credit, it showed up on my ex husbands credit report. All these years, he was not on my statements, not shown as a cosigner on my credit report nor his. This does not seem legal. And now this has caused a hardship for my ex and bad blood between us. The bank told us that they transferred the balance to my account but kept him on as a cosigner. When I asked for a copy of the promissory note, it has our joint account number, not my account number. This seems very shady to me and illegal. Any advice would be appreciated. Thanks.


Senior Member
If you did not refinance (?) then you did not remove his responsibility.
"If she did not refinance"? Refinance what? What was "financed" that needed to be financed again?

The poster explains that at the time of the divorce the couple had a joint line of credit on which they were jointly and severely liable. In the course of settling their financial affairs she assumed the balance of the joint line of credit account and had it transferred into a new account under her sole name. After which she continued to borrow against the line of credit account until she ultimately defaulted in her payments.

Where she and her ex are in error thinking that the bank messed up is in failing to realize that a line of credit operates similarly to any open or revolving account. When the line of credit was opened the ex husband was either a primary or a co-signor and his liability on the account continues until it is closed. And the wife transferring it to new account number did not serve to close it. It continue to revolve under a different account number. In other words it was the same line of credit, but given a new account number.