Just got blindsided by something, quite nervous, possibly screwed big time. Help?

[justbroke]

Refinance is a loose term.

Refinance isn't a loose term to me, nor is it to the courts. What you're talking about is called novation. Refinance is a transaction in which new consideration or new money is used to pay off an old debt. To me, refinance is not novation. Novation is where you can substitute the contract but still, all parties must agree even in novation.

I don't think there's any way around substituting terms of any contract without all parties to the contract agreeing. If there's ever any new consideration, or additional money loaned, that's definitely a new contract and not novation. There are several great bankruptcy cases on this matter. I had to research because I refinanced a car with the same lender and was worried that the 910-day rule would still apply.

It didn't because novation didn't occur.

Without knowing the precise details, difficult to make a judgment.

I only offered that because someone proffered that it was "refinanced". However, we now know that no such refinancing occurred.

[Dst1]

Refinance isn't a loose term to me, nor is it to the courts.

That is true. But these boards are not a court of law and most people here are not lawyers. People don't often use terms in their legally precise manner around here.

[justbroke]

That is true. But these boards are not a court of law and most people here are not lawyers. People don't often use terms in their legally precise manner around here.

I am sometimes guilty of that. I had to actually look up refinance because the fact I was cramming down a vehicle that I had refinanced only a year prior to filing and was worried about the 910-vehicle thing. Even reading the actual law... it isn't so specific.

[AngelinaCat]

Once the debt is refinanced, you are no longer responsible unless you signed for the refinance as well. If the co-debtor used trickery and forged your signature and/or used your personal credit information to obtain credit and to refinance the vehicle... that's a whole different matter. That would have both civil and criminal issues and I'd try to sort through this immediately!

Even if the co-debtor refinanced through the same company, there is no way they can refinance debt and include someone who isn't a part to the refinancing agreement. Title issues aside, this would be cause for some serious anger to be directed in the co-debtor's direction.

Because of this discussion, I went and asked 'Hub specifically about what he co-signed, since he is the one that signed the papers. He said that yes, he knew about the refinancing and it was in the paperwork that he co-signed. The acquaintance made his payments in a timely matter for about a year before he started falling behind and then missing them altogether.