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Student loans/ divorce settlement
Posted on 5/22/12 at 9:50 am
Posted on 5/22/12 at 9:50 am
Long story short:
Divorced 8 years ago. Ex-wife took student loans (her loans of which I co-signed on) as part of divorce settlement. Have not spoken to her since divorce (no kids). Heard she filed bankruptcy soon after divorce. Apparently, she has decided to become delinquent on her loans and I am now receiving the payment bills. She's a legislative auditor, no less. Anyways, do I have any options (legal recourse) if she decides to quit paying it all together?
Divorced 8 years ago. Ex-wife took student loans (her loans of which I co-signed on) as part of divorce settlement. Have not spoken to her since divorce (no kids). Heard she filed bankruptcy soon after divorce. Apparently, she has decided to become delinquent on her loans and I am now receiving the payment bills. She's a legislative auditor, no less. Anyways, do I have any options (legal recourse) if she decides to quit paying it all together?
6
Posted on 5/22/12 at 10:02 am to Evil Boll Weevil
Declare bankruptcy. Why would you cosign on anyone's student loans? I had been married for 4 yrs and still wouldn't cosign on my wife's loans. Figured her doing her own loans would give her incentive to actually use her degree.
Posted on 5/22/12 at 10:13 am to guttata
quote:
Declare bankruptcy.
I think this is bad advice... I could be mistaken, but I'm fairly certain that student loans are not dischargeable in bankruptcy.
I would think you should talk to your divorce lawyer about this. I have no earthly idea if the divorce settlement agreement would negate the co-signing for the loans. Although, frankly, I would be surprised if it really did.
Posted on 5/22/12 at 10:38 am to guttata
I was 20 at the time and not all that smart, I guess. I'm 35 now and have all my "ducks in a row" financially so bankruptcy is not an option. I was just wondering if anyone had experienced a similar situation or had legal advice before I contact my lawyer about it.
Posted on 5/22/12 at 10:42 am to guttata
quote:
I had been married for 4 yrs and still wouldn't cosign on my wife's loans.
True love
Posted on 5/22/12 at 10:59 am to Evil Boll Weevil
How much is owed overall?
How much was owed at the time of the divorce?
Seems like you could at the worst pay half the amount owed at the time of the divorce to settle your legal responsibility.
How much was owed at the time of the divorce?
Seems like you could at the worst pay half the amount owed at the time of the divorce to settle your legal responsibility.
Posted on 5/22/12 at 11:06 am to Evil Boll Weevil
First of all, student loans are not dischargable in bankruptcy anyway, so any talk of bankruptcy is moot.
That said, I doubt very seriously your divorce settlement in any way legally took you "off" as co-signer. BUT, you would certainly have legal recourse available against your x-wife if you were forced to pay those debts.
You certainly need to get it figured out, because it will definitely go on your credit if those are not paid. Although I don't think you will have any success, I would also call the lenders, explain the situation, and see if they will take you off as co-signer if you send them the divorce settlement paperwork. I doubt they will do that, but it's worth a shot.
That said, I doubt very seriously your divorce settlement in any way legally took you "off" as co-signer. BUT, you would certainly have legal recourse available against your x-wife if you were forced to pay those debts.
You certainly need to get it figured out, because it will definitely go on your credit if those are not paid. Although I don't think you will have any success, I would also call the lenders, explain the situation, and see if they will take you off as co-signer if you send them the divorce settlement paperwork. I doubt they will do that, but it's worth a shot.
Posted on 5/22/12 at 11:13 am to Waffle House
41K. Of which she's only paid 1,500 of (another mystery). Not really excited about the thought of paying any money towards this fiasco, much less paying 20K. I'm sure my current wife wouldn't be too happy either.
Posted on 5/22/12 at 11:15 am to Evil Boll Weevil
never-mind.
This post was edited on 5/22/12 at 11:21 am
Posted on 5/22/12 at 11:25 am to Evil Boll Weevil
But look on the bright side, you taught me a valuable lesson. Don't cosign for your wife (lol) unless you are willing to foot the whole bill.
Posted on 5/22/12 at 11:50 am to Evil Boll Weevil
quote:
41K. Of which she's only paid 1,500
Ahhhhhh yeah F that. I thought/hoped it was something you could avoid for around 2-5k to save yourself the hassle.
JP is probably right about seeking to negotiate with the lender by providing the divorce settlement paperwork.
If not, could you sue her directly for the money since it is her obligation under the terms of the divorce?
Posted on 5/22/12 at 11:51 am to Evil Boll Weevil
quote:
much less paying 20K.
If you co-signed I think you'd be on the hook for the entire amount, not half. You in effect guaranteed the loan by co-signing.
Posted on 5/22/12 at 11:56 am to Layabout
quote:
If you co-signed I think you'd be on the hook for the entire amount, not half. You in effect guaranteed the loan by co-signing.
Yup. Which is why I am trying to figure out what this actually means.
quote:
Ex-wife took student loans (her loans of which I co-signed on) as part of divorce settlement.
This post was edited on 5/22/12 at 11:57 am
Posted on 5/22/12 at 12:14 pm to Waffle House
I'm thinking that sueing her directly , under the terms of the divorce, may be my only option... Other than paying the loan myself (last resort). I'll probably have some preliminary discussions with my lawyer in the next few days about the situation, just incase.
Posted on 5/22/12 at 12:32 pm to Evil Boll Weevil
it's just like a house. If you co-borrowed/co-signed the loan, then the only way you can get off the hook is if she refinances the debt strictly into her name.
The lender is not going to let you off the hook just because a divorce decree states it. The lender is not obligated to let anyone off the hook for debt. You signed, it's your debt no matter what, until she refinances.
I've seen it time and time again that a divorce decree states that a spouse must refinance a house out of THEIR names and into his/her name. Only problem is that one spouse doesn't qualify on his/her own or the house is upside down and they can't refi. Again, lender doesn't give a shite what the divorce decree or order states. They are only worried about one thing and that is getting repaid. If they have a live worm on the hook (you) they are going to set it and get repaid that way.
Sorry, but unless your ex is willing to step up to the plate then you're stuck. And it sounds like she isn't in a position to refinance the debt if 1) she can't pay it now and 2) she's filed bankruptcy.
The lender is not going to let you off the hook just because a divorce decree states it. The lender is not obligated to let anyone off the hook for debt. You signed, it's your debt no matter what, until she refinances.
I've seen it time and time again that a divorce decree states that a spouse must refinance a house out of THEIR names and into his/her name. Only problem is that one spouse doesn't qualify on his/her own or the house is upside down and they can't refi. Again, lender doesn't give a shite what the divorce decree or order states. They are only worried about one thing and that is getting repaid. If they have a live worm on the hook (you) they are going to set it and get repaid that way.
Sorry, but unless your ex is willing to step up to the plate then you're stuck. And it sounds like she isn't in a position to refinance the debt if 1) she can't pay it now and 2) she's filed bankruptcy.
Posted on 5/22/12 at 12:42 pm to Im4datigers
Thanks for the help. Looks like I may have to actually contact her to see if that is a viable option. Damn!
Posted on 5/22/12 at 1:28 pm to Evil Boll Weevil
I know a guy...
Posted on 5/22/12 at 1:31 pm to iknowmorethanyou
Posted on 5/22/12 at 1:33 pm to NukemVol
quote:
But look on the bright side, you taught me a valuable lesson. Don't cosign for your wife (lol) unless you are willing to foot the whole bill.
Don't cosign for anything or anyone unless you're willing to foot the whole bill.
Posted on 5/22/12 at 2:00 pm to Evil Boll Weevil
Could this be malpractice on the attorneys part? Seems like any decent attorney could have foreseen this and would have required a refinance of the debt.
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