While I was married I cosigned on a auto loan for my husband. Now that we're divorced he's been late at least a month if not two for the past year. Prior to this I've always paid my bills on time. Admittedly some of my credit cards are close to the limit, but never over them. Because of this my credit score had dropped dramatically. When he makes the payment then it jumps back up. It's to the point now where my credit cards are raising the interest rates from around 7.9 to 15.99. Because of this, I'm nearly to the point where I can't afford to make the minimums, much less pay more like I had in the past. What can I do? He has 3 years left on the loan. So either he messes up my credit for another 3 years plus the 7 it will take for the late payments to fall off, or I have to file bankruptcy and start to rebuild credit on my own. Please understand I'm not just some crazy deadbeat who doesn't want to pay the bills. I'm notoriously careful with paying things on time and making sure they are taken care of, I just don't know whatelse to do. It was in our divorce decree that he was supposed to try and refinance without great financial hardship to himself... but now he's bringning financial hardship on me. I'm just not sure what is the best thing to do. What would you do?
Before finishing your full explanation I was going to say to have him refinance the auto loan so you are no longer on it.
Since you are still on the account maybe you can talk to the bank and ask them if there is an easy way to refinance so it will be the same length of pyts left etc...and get the paperwork and hand it over to your ex....tell him to get the paystub info turned in and sign because the divorce papers said he was supposed to refinance.... Hopefully his own personal credit isn't so messed up that he can't qualify.
Unfortunately there isn't much you can do unless you (hopefully) have a good relationship with your ex and you can work something out amicably. The only legal recourse is BK (which is a nuclear weapon of course) which will mean the creditors will only be (legally) able to go after your husband. They will still try and come after you - It's illegal but just be aware.
One option would be to sell the vehicle (I assume there is no negative equity). That may be your best recourse???