held liable for spouses debt on a car loan

Nov 16, 2011

held liable for spouses debt on a car loan
by: Debtcollectionanswers.com.

Sorry to hear about your predicament Tammy. I hope your spouse gets well soon.

Whether or not you are legally responsible for the unpaid balance due on the car loan depends on whether or not you signed for the loan together with your spouse. If you are both on the note, then you are as liable as your spouse for paying what is owed.

Even if you are not liable for the money, you may want to pay it, assuming you can afford to, because the outstanding loan is affecting your spouse's credit history. That means that if the two of you were to apply for a future loan, that information could affect your ability to qualify for the loan. Also, if the lender successfully sues your spouse for the unpaid loan balance and then takes steps to collect on the judgment, its actions could have a financial impact on your as well as your spouse.

It's possible that the lender may be willing to settle the debt for less than the remaining balance. If you are able to negotiate a settlement with the lender, be sure to get the terms of your agreement in writing before you pay the lender any money.

You may also want to consult with a bankruptcy attorney about your situation. I don't have a complete picture of your finances nor am I an attorney, but if you have a lot of debt and very little income, filing for bankruptcy could be a smart move. Your initial meeting with a bankruptcy attorney should be free. If you are interested in talking with a bankruptcy attorney to get a more complete understanding of your situation and your options, go here to schedule
a free consultation with a bankruptcy attorney .

held liable for spouses debt on a car loan

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held liable for spouses debt on a car loan