     Lisa | Sunday, February 20, 2000 - 07:49 pm 
I co-signed a car loan for my partner of 4 years, to commute to and from the house we had started to purchase 5 months before. Little did I know she had been cheating on me for 2 months then, and to this day, 8 months later continues to do so. I have asked her to get the car refinanced and off my credit, but she can't find anybody to do so.
I signed for my partner, not a cheater. I was lied to and I have proof. I co-signed lied to and I would like to know what can I do to get out of it and how liable am I. PLEASE help me!!!! |
| Anonymous | Monday, February 21, 2000 - 03:49 am
You're liable for the debt until the "liar" refinances the vehicle or pays it off, unless you get a court order that instructs the finance company to remove you from the account and relinquish you from liability (usually only done as a result of divorces, etc.). |
| Voigtkampff | Monday, February 21, 2000 - 05:35 am
Actually, it's my experience that even in the case of a cheating SPOUSE, the victim is still liable after divorce. The divorce decree may say that one party is responsible, but it does not say that they are liable. Responsible and liable are not the same thing.
In order for a court to have jurisdiction over a party, that party must have been served and presented with an opportunity to appear in court and be heard. Called due process. In divorces, the petitioner does NOT serve the summons on every creditor a well as on the respondent. The court, therefore, cannot tell the creditor that they cannot come after someone who was legally, contractually responsible to the creditor. But the court can tell one spouse that they alone are responsible for payments on the debt. So that if they fail to make payments, then they are in violation of a court order, and that violation might be contempt of court. Possible jail time, fines, etc.
If this seems off topic, I just want you to understand that you are liable to the creditor. That even if this were a divorce situation, you would still be in a little trouble. You cannot say that you were fraudulently induced into the contract by the creditor, so you cannot have them suffer because of your bad choice.
Chances are that the loan (under those terms) was extended only because you co-signed. While it seems unfair to you, I don't see how you can cry foul to the lender. It was not their responsibility to inquire into the partner's fidelity. This is a financial and not a romantic contract. I'm not being heartless, just trying to let you see things from the creditor's, and the court's, perspective.
Of course, if you can show that your partner tricked you into signing on the contract, it is remotely (very) conceivable to have a court hold her responsible, just as in a divorce. I think so. |
| Anonymous | Monday, February 21, 2000 - 05:59 am
When I said "get a court order", I didn't mean that you obtained it without the knowledge of the other party. I mean "get" meaning "obtain".
My spouse and I split in '92. We had a 1991 automobile with a joint contract for repayment. We agreed that I would take full responsiblity and liablity for the loan and the car and it was so written up in our divorce decree. I called the lender & subsequently mailed a copy of the decree to them. Two weeks later, I received a new payment booklet listing my name only and a letter stating that repayment of this debt was my sole responsibility, and my spouse had no responsibility or liablity.
If you AGREE and OBTAIN a court order - maybe that's how I should have stated it. |
| kristy welsh - creditinfocenter.com | Monday, February 21, 2000 - 07:36 am
No matter what the divorce decree (or court order) says, "anonymous" is correct: If you co-sign a loan, you are responsible for the debt until it is paid off. The reason: you signed a contract with the creditor, and unless everyone involved (including the creditor) agrees to alter the terms of that contract, you are bound by it. During the divorce process, creditors are not consulted, nor do they sign off on the court orders on division of debt. |
| Voigtkampff | Monday, February 21, 2000 - 11:27 am
Absolutely. Anonymous, you misread my post. In a divorce, there is no due process on every creditor. Creditors are not noticed. So whether you call it "get" or "obtain", either way the creditor was not part of the proceeding and there is no jurisdiction over that party.
Creditors can agree to release one of two parties from liability, but make no mistake, it is purely their choice. |
| dede | Monday, February 21, 2000 - 01:23 pm
When I went through my divorce about 8 years ago we notified the holders of our auto loans and credit cards that we each were keeping. One of the banks for the auto loan took my x off but the other refused to remove me. Some credit card companies would take one of us off, some would not. It was a matter of individual policy. A friend of mine went through a divorce in the last year and tried to do the same thing. Not one of them would remove the other. I guess in this age of high defaults they prefer to have a second party to fall back on. |
| Voigtkampff | Monday, February 21, 2000 - 02:33 pm
I agree, Dede. It makes perfect sense. If I were a creditor, I would want as many people on the hook as possible. And it is not only a matter of defaults. What if a creditor lets one person off the hook, and the only remaining debtor dies or becomes judgment-proof. But of course it is still worth a try. I guess it is even possible that a creditor might be ignorant of the law and think that they are not allowed to pursue one spouse because of a divorce decree. |
