Posted: 12/23/2009 5:45:17 PM EDT
|
I'm screwed.
When I got divorced last year, my ex-wife, as part of the divorce agreement, agreed to take her van with all debt and encumbrances. Anyways, the loan was in my name and she never secured her own loan. The van was repo'd, sold at auction and now debt collection is coming after me as my name is on the loan and they will not honor the divorce decree. Since I live in a prejudgement state, they can now put a hold on my accounts and garnish 25% of my gross wages. To top it off, I was saddled with a load of debt, she (thankfully) gave me custody but by state law she's below the poverty line so she only pays $50/month in child support and zero daycare costs which costs about $1200/month. I'm mailing a dispute of validity to the debt collection agency but this will only buy me a few weeks. If Toyota does not accept the dispute of validity, they will force me to file for bankruptcy...just so I can pay for daycare 
Has anyone else gone through this and do I have any other options? There is no way that I can pay her debt or the debt collection agency and suing her would be pointless as that would cost me money, she has none and they'd still garnish my wages regardless of the lawsuit. |
| I know laws vary by state, but when I went through my divorce I had a similar situation and my lawyer said a copy of the divorce decree stating the ex was to put the loan in her name for her car would suffice if this situation happened to me. Technically, your ex didn't comply with the court agreement so hopefully Honda will drop their claim against you. however, since you have money, and your ex is below the poverty line, Honda sees you as the one with the cash. Hope it works out, have you tried calling your lawyer from the divorce to see what he says? Thankfully my ex paid off the car loan. |