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ff35
Posts: 1
Registered: ‎08-30-2009
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Credit repair after divorce.

I am trying to rebuild my credit after a divorce. My exwife defaulted on a auto loan through a high-risk lender that I was a consignor on. She did not refinance the vehicle after the divorce and in my divorce stipulation it states that she was to be responsible for the vehicle. Can I dispute this? Is it worth it? Any direction would be great. I can show that everything since our separation that I am responsible for has been on time and doing well.
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charliebrown1370
Posts: 313
Registered: ‎06-26-2009
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Re: Credit repair after divorce.

[ Edited ]

ff35 wrote:
I am trying to rebuild my credit after a divorce. My exwife defaulted on a auto loan through a high-risk lender that I was a consignor on. She did not refinance the vehicle after the divorce and in my divorce stipulation it states that she was to be responsible for the vehicle. Can I dispute this? Is it worth it? Any direction would be great. I can show that everything since our separation that I am responsible for has been on time and doing well.

 

Welcome to the forums. 

 

When you cosigned for the loan you basically promised to pay it if your ex didn't. A dispute would probably come back as verified.

 

Disclaimer: I am not an attorney nor do I play one on television. From a civil stand point you may have some recourse. Depending on the wording of the divorce decree, your ex may be in contempt of court for not following the agreement. When I went through my divorce my ex wanted the house. I said fine with the stipulation that she be 100% responsible for it and that, until she was able to refinance, she would protect my interests in the house. Protecting my interests included protecting my credit by making all payments on time. The decree spelled out very specific remedies if she did not. Bottom line; Talk to your attorney.

 

What is the current status of the loan? If you can get the debt satisfied, you could GW the OC, state your circumstances, and perhaps they will remove the TL from your report.

 

CB

Message Edited by charliebrown1370 on 11-03-2009 10:46 AM

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Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Credit repair after divorce.


charliebrown1370 wrote:

ff35 wrote:
I am trying to rebuild my credit after a divorce. My exwife defaulted on a auto loan through a high-risk lender that I was a consignor on. She did not refinance the vehicle after the divorce and in my divorce stipulation it states that she was to be responsible for the vehicle. Can I dispute this? Is it worth it? Any direction would be great. I can show that everything since our separation that I am responsible for has been on time and doing well.

 

Welcome to the forums. 

 

When you cosigned for the loan you basically promised to pay it if your ex didn't. A dispute would probably come back as verified.

 

Disclaimer: I am not an attorney nor do I play one on television. From a civil stand point you may have some recourse. Depending on the wording of the divorce decree, your ex may be in contempt of court for not following the agreement. When I went through my divorce my ex wanted the house. I said fine with the stipulation that she be 100% responsible for it and that, until she was able to refinance, she would protect my interests in the house. Protecting my interests included protecting my credit by making all payments on time. The decree spelled out very specific remedies if she did not. Bottom line; Talk to your attorney.

 

What is the current status of the loan? If you can get the debt satisfied, you could GW the OC, state your circumstances, and perhaps they will remove the TL from your report.

 

CB

Message Edited by charliebrown1370 on 11-03-2009 10:46 AM

 

Yes, contempt may be an option although judges are slow to hold someone in contempt over these issues.

 

You can also file a civil suit against your ex.

IAALBNYL
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RobertEG
Posts: 18,498
Registered: ‎03-19-2007
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Re: Credit repair after divorce.

As a cosigner on the loan, if she defaults, you are still liable in the eyes of the lendor for the default itself until such time as you raise a legal defense based on terms of your divorce decree.  If they bring legal action and name you as a defendant, the specific terms of your divorce decree will be used to determine your liability.  I would get a lawyer ASAP. 

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O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Credit repair after divorce.


RobertEG wrote:

As a cosigner on the loan, if she defaults, you are still liable in the eyes of the lendor for the default itself until such time as you raise a legal defense based on terms of your divorce decree.  If they bring legal action and name you as a defendant, the specific terms of your divorce decree will be used to determine your liability.  I would get a lawyer ASAP. 


 

From a legal standpoint, it is virtually impossible for the terms of a divorce decree to bind a creditor on a pre-existing debt.  It is well-settled legal principle that a creditor has recourse against both parties irrespective of the terms of any divorce decree or settlement agreement.  The injured spouse, however, has recourse against the other spouse.
IAALBNYL
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hrswood01
Posts: 1
Registered: ‎06-27-2007
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Re: Credit repair after divorce.

I am also trying to rebuild / fix my credit after a divorce in 2005.  After reading the posts, it seems I have taken care of what is in my control as far as my credit. (closing all cc that were joint accts, contacting bureaus and updating reports.)  My divorce decree states that he is to pay 1/2 of the debt over a two year period which is $10,000 and if he defaults on anything (which are several issues) he is to pay all atty fees.  It has been over 2 years and he has not paid anything. As a matter of fact, he has told me to F&*k off and file bankruptcy and that I'm not going to see a penny of what he owes me.  He has no respect for the courts and sees the divorce decree as a joke.  I have been paying down the credit cards over the years but of course it's not fast enough to help my credit score.  Almost all the credit was/is in my name due to the fact that I had great credit.

 

My divorce was granted in WY, he moved back to TX and I now reside in WA state.  After many sleepless nights, years of frustration and feeling helpless, I'm at the end of my rope and don't know where to turn.

 

Does anyone know how I can get him to take me seriously and honor the judge and my divorce decree?  I'm only asking what is due or granted to me.  Does anyone know what type of atty I contact?

 

Thanks for listening and I hope there is someone out there who can give me the justice that is due me.

Hopeful in Seattle :womansad:

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Credit repair after divorce.


hrswood01 wrote:

I am also trying to rebuild / fix my credit after a divorce in 2005.  After reading the posts, it seems I have taken care of what is in my control as far as my credit. (closing all cc that were joint accts, contacting bureaus and updating reports.)  My divorce decree states that he is to pay 1/2 of the debt over a two year period which is $10,000 and if he defaults on anything (which are several issues) he is to pay all atty fees.  It has been over 2 years and he has not paid anything. As a matter of fact, he has told me to F&*k off and file bankruptcy and that I'm not going to see a penny of what he owes me.  He has no respect for the courts and sees the divorce decree as a joke.  I have been paying down the credit cards over the years but of course it's not fast enough to help my credit score.  Almost all the credit was/is in my name due to the fact that I had great credit.

 

My divorce was granted in WY, he moved back to TX and I now reside in WA state.  After many sleepless nights, years of frustration and feeling helpless, I'm at the end of my rope and don't know where to turn.

 

Does anyone know how I can get him to take me seriously and honor the judge and my divorce decree?  I'm only asking what is due or granted to me.  Does anyone know what type of atty I contact?

 

Thanks for listening and I hope there is someone out there who can give me the justice that is due me.

Hopeful in Seattle :womansad:


 

Sorry to hear about your problem.

 

There are a couple of ways to go about this, but the longer you put off taking action the worse it will be.

 

You can go back to court and file an Order to Show Cause which will effectively ask the court to hold your former husband in contempt.  Courts generally hesitate to hold one in contempt over a domestic action, but they will not let him slide indefinitely.  Depending on your state, you may not have to go back to WY to file.  Your state may allow for domestication of your WY divorce decree and you could try and file in your current home state.

 

Another alternative is that you can sue him and obtain a judgment.  You'll have to check jurisdictional issues with the courts in WA to see how to effect service on an out-of-state defendant.  Another possible issue is that the statute of limitations may have expired and you might be barred from suing him.  Again, that depends on your state.  Suing him may give you his undivided attention, but remedies against judgment debtors in Texas are a bit more limited than in some other states.  Still, the judgment will be on his credit report at least. 

 

To sue him you'll probably need to retain an attorney and you'd have to see if a) you can recover legal fees and b) what the possibilities are of collecting from him even if you do obtain a judgment.  Trying to have him held in contempt might be able to be done without a lawyer.

IAALBNYL

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