Who's on the hook?

[teerx79]

I was divorced a year ago and she got the house with all the debt attached. She was also "awarded" custody of her and her son's vehicles. She was ordered to get these and many other things refinanced to "hold me harmless".

Well she hasn't and creditors are contacting me for payments. I have picked up the paperwork to file BK but starting to get second thoughts on what the outcome will be. I am on the hook for about $300k of "her" debt that she is slow/non paying and it has dropped my FICO score over 120 points in a year.

My question is, Though I would discharge my involvement from the debt, would she have to reaffirm mortgages, vehicles, etc to retain possession?

I have been current with my financial responsibilities and am filing because of her contempt. I spent $3000 taking her back to court only to find out her credit is so poor, she can't get refinancing.

[keepmine]

Your bk leaves her responsible for all the loans that were joint. She'd have to get current and stay current to keep the secured debt.

[whipster1]

All that would be her problem. You are discharging your liability and she has nothing to do with your case. I would put her as a creditor though just in case she decides you are liable for something.

[damooster]

I don't know anything about divorce law or anything like that, but if she was ordered to refinance everything so that it's under her name, and she didn't, can't you report her to the court? I'm sure the judge would not be too happy with her disobeying an order.

I hate that you would have to file bankruptcy for this. There has to be an alternative!

[OhioFiler]

I don't know anything about divorce law or anything like that, but if she was ordered to refinance everything so that it's under her name, and she didn't, can't you report her to the court? I'm sure the judge would not be too happy with her disobeying an order.

I hate that you would have to file bankruptcy for this. There has to be an alternative!

Usually, the separation agreement will specify when the other party has to have accomplished the refinancing.

The OP could take her back to court on contempt charges but I doubt the judge would do anything other than give her more time to get the refi done. If she doesn't qualify for a loan the judge can't force a lender to refi her anyway.

That's why I always say it's best to just shoot her and be done with it.

j/k!!

[teerx79]

The Hook

Thanks for all the replies. I did use the suggestion of adding her as a creditor in the event she comes back in the future to hold me accountable.

During her deposition in February on the Order of Judgement Motion, she testified that she could not get re-financing on any joint debt. That is why I sought the BK, to relieve me of her awarded debts.

I sign the BK filing this Wednesday. As far as the divorce, I continue to go after my half of her 401(k) under the QDRO, marital property. I am filing Ch. 13 so this asset, if I ever realize it, should not be taken by the court.