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loan repayment

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Yurgee

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

As a part of my divorce, the agreement states that I have to repay my wife for what was an original home equity loan. When I was ordered to pay the loan, I did not start paying it right away. As a result she hired an attorney and I was ordered to pay it with a new agreement generated by her attorney.

The agreement stated that the loan was due on the 5th of each month and that if I was late that I would incur a $15 fee on top of the payment. If I was more than 60 days late that I needed to pay the balance of the loan.

I have been paying the loan for several years and in May 2008 I stopped paying. At the end of July or the beginning of August it was now over 60 days due. In late November I received a summons for contempt for not paying the loan. She is seeking the remainder of the loan and attorneys fees. I was able to gather the entire balance and sent her a check for the balance.

If the agreement that I signed indicated that if the payment was overdue by 60 days and required payment in full, can she receive attorneys fees if I now paid the loan? I understand that it is 6 months past due and she was seeking payment, but I paid in accordance with the agreement. I would have thought it would have been a collections issue of small claims court thing at that point.
 


LdiJ

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

As a part of my divorce, the agreement states that I have to repay my wife for what was an original home equity loan. When I was ordered to pay the loan, I did not start paying it right away. As a result she hired an attorney and I was ordered to pay it with a new agreement generated by her attorney.

The agreement stated that the loan was due on the 5th of each month and that if I was late that I would incur a $15 fee on top of the payment. If I was more than 60 days late that I needed to pay the balance of the loan.

I have been paying the loan for several years and in May 2008 I stopped paying. At the end of July or the beginning of August it was now over 60 days due. In late November I received a summons for contempt for not paying the loan. She is seeking the remainder of the loan and attorneys fees. I was able to gather the entire balance and sent her a check for the balance.

If the agreement that I signed indicated that if the payment was overdue by 60 days and required payment in full, can she receive attorneys fees if I now paid the loan? I understand that it is 6 months past due and she was seeking payment, but I paid in accordance with the agreement. I would have thought it would have been a collections issue of small claims court thing at that point.
Yes, there is a chance that she could still get attorney fees. You still forced her into the position of having to hire an attorney to handle the matter. Dumb move on your part.
 

Yurgee

Member
somewhat agree

I had been paying for several years and clearly showed that I was in compliance with the order. I ran into some unexpected expenses and could not make full payment. When I asked her if I could pay a little less, she would not agree and said all or nothing. I tried saving to pay the enitre amount and ultimatley had to borrow to pay the balance.
 

Some Random Guy

Senior Member
I had been paying for several years and clearly showed that I was in compliance with the order. I ran into some unexpected expenses and could not make full payment. When I asked her if I could pay a little less, she would not agree and said all or nothing. I tried saving to pay the enitre amount and ultimatley had to borrow to pay the balance.
All of that means nothing. Your loan agreement and your failure to make payments or payoff then entire balance after 60 days are what matters. You failed to live up to your agreement and she incurred extra expenses to force you to pay.
 

Some Random Guy

Senior Member
Did you make the payment at the start of august when you were 61 days overdue? Did you make payments after she asked you to pay? Or did you wait until you were 150 days overdue and a summons was issued?
 

LdiJ

Senior Member
I had been paying for several years and clearly showed that I was in compliance with the order. I ran into some unexpected expenses and could not make full payment. When I asked her if I could pay a little less, she would not agree and said all or nothing. I tried saving to pay the enitre amount and ultimatley had to borrow to pay the balance.
And you could have borrowed to keep your payments timely...and you could have borrowed to pay it off in a lump sum much sooner than you did.
 

Lish

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

As a part of my divorce, the agreement states that I have to repay my wife for what was an original home equity loan. When I was ordered to pay the loan, I did not start paying it right away. As a result she hired an attorney and I was ordered to pay it with a new agreement generated by her attorney.

The agreement stated that the loan was due on the 5th of each month and that if I was late that I would incur a $15 fee on top of the payment. If I was more than 60 days late that I needed to pay the balance of the loan.

I have been paying the loan for several years and in May 2008 I stopped paying. At the end of July or the beginning of August it was now over 60 days due. In late November I received a summons for contempt for not paying the loan. She is seeking the remainder of the loan and attorneys fees. I was able to gather the entire balance and sent her a check for the balance.

If the agreement that I signed indicated that if the payment was overdue by 60 days and required payment in full, can she receive attorneys fees if I now paid the loan? I understand that it is 6 months past due and she was seeking payment, but I paid in accordance with the agreement. I would have thought it would have been a collections issue of small claims court thing at that point.
I don't know how your state handles contempt but from my dealings with contempt as long as you take care of the situation before court ( and that could be handing her a check before you walk in the courtroom) you shouldn't be held in comtempt. And if the court does not find you in contempt then you shouldn't be held for attorney fees. About the only thing you might be accountable for is the $15 that you would be charged if you were late past the 5th of the month. So you might still owe her $90.
 

LdiJ

Senior Member
I don't know how your state handles contempt but from my dealings with contempt as long as you take care of the situation before court ( and that could be handing her a check before you walk in the courtroom) you shouldn't be held in comtempt. And if the court does not find you in contempt then you shouldn't be held for attorney fees. About the only thing you might be accountable for is the $15 that you would be charged if you were late past the 5th of the month. So you might still owe her $90.
You cannot know that with any certainty. Its better that he be prepared.
 

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