My ex-husband took out a bank loan in my name (with my consent) and now that we are divorced I am obligated to pay it and I dont have any money to spare I am living paycheck to paycheck working two jobs. He also left me with $6,000 in credit card debt. does anyone have any suggestions and whats the worst that could happen? and how long before my credit is good again?
2006-12-08 08:57:48 · 13 answers · asked by Crystal W 1 in Business & Finance ➔ Credit
If it's an unsecured loan, then you'll simply be harrassed by the lender and the collection agencies. It will also show on your credit that you did not pay for a loan.
If it's secured, they can take whatever collateral you used to secure it (house, car, first-born, etc).
I would recomend calling the bank. Tell them you are divorced and are having a very difficult time paying it. They may be able to work out a payment plan that's an easier burden to bear.
You really don't want your credit to suffer too bad or you won't be able to get another loan. You may not be in the market for another loan now, but what if your washer/dryer crap out and you need to rent-to-own a set. What if your car craps out and you need to get to work? You'll need to be able to borrow money for any big expense that you may not be expecting (especially if you are living pay-check to pay-check).
Good luck.
BTW, the United States does not jail people for un-paid debts. Ignore that guy.
The answer below is wrong, too. Wages are only garnished for Alimony or Child Support.
2006-12-08 09:02:39 · answer #1 · answered by trigam41 4 · 1⤊ 1⤋
There are several bad things that will happen.
Your credit will be trashed for 7 years.
They will repossess the property securing the loan (probably the car) and sell it.
You will be lliable for the remaining debt, or ALL the debt if the loan is NOT secured.
If you do not pay the loan, you will be taken to court. There will be a judgement entered against you and an order from the court to pay the debt. If you do not pay the debt after getting a court order to do so, you CAN be put in jail, despite the ignorant comment to the contrary.
The judgement will be put on your credit report, and THAT will stay there for TEN years.
You should have had your lawyer put in the divorce affadavit that these debts were HIS responsibility. In the meantime, all you can do is sue him and try your best to pay them. Perhaps start looking for a second or better-paying job.
2006-12-08 09:11:19 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If the bank pays for it you will get hit with overdraft fees usually ranging between 20-30$. If your bank doesn't pay it the loan office will probably charge you 20-30$ (like a bounced check). Some states don't have limits on how many times they can try and each one will have the fee. I had a bank transfer go bad and it charged me 25$-3 times. Call the loan office and tell them to hold off. Some are willing to work if you let them know ahead of time.
2016-05-23 07:30:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you do not pay it, is will go to collections. You do not want a collection agent harassing you. Even through there are laws that are setting boundaries of what a collection agency can and cannot do, some agents are not aware of those laws. I still hear stories of debt collectors call at all ends of the day and at the person’s work, which is now illegal. However, if you plan to take them to court, the process will not more swiftly.
I hate to say this, but you are stuck with the debt. It might be best to seek other alternatives such as family assistance, cutting back expenses, or rearranging your financial lifestyle to pay the debt.
2006-12-08 08:59:52 · answer #4 · answered by jynxx25 2 · 1⤊ 0⤋
They will not leave you alone for sure. It will stay on your credit record for 7 years AFTER and IF you settle with the bank.
Is his name at all on the loan or credit cards? You can take him to court for half at least if he is on there.
I know that sucks... but all it is going to do is rack up interest and then when you do settle you will be paying even more. It will also hurt your chances of getting a car or home loan in the future.
It wont be easy to get rid of it... but best of luck.
2006-12-08 09:02:01 · answer #5 · answered by designerista 4 · 0⤊ 0⤋
Theres really nothing you can do but sue him for the money and your credit will pretty well be destroyed for life and depending on how you worked the loan the bank could possibly come take your car or house or something of that nature so i'd reccomend paying the loan
2006-12-08 09:01:24 · answer #6 · answered by jacob m 2 · 0⤊ 0⤋
What is the worst that can happen? A judgement will be awarded against you and your name will be tarnished for 7 years. It's my understanding wage garnishment is not permitted in Texas (but check with a lawyer anyhow) so your earnings are safe.
Same thing on the credit cards, but if their individual balances (including the loan) don't exceed $3500, the law suit (judgement) probably won't be filed.
But the delinquent accounts, will have the same effect as a judgement, and no more.
It would be helpful if I knew the balances.
2006-12-08 09:12:10 · answer #7 · answered by Anonymous · 0⤊ 1⤋
To be perfectly honest with you, the worst would and probably will be, the need to file bankruptcy. Your credit will be at the lowest for 5 to 7 years. Sorry to hear of you dilemma.
Good luck
2006-12-08 09:25:53 · answer #8 · answered by Anonymous · 1⤊ 0⤋
I HAVE A LOAN AT THE BANK AND I CANT CONTINUE TO PAY IT ITS NOT AGAINST MY HOUSE WHAT IS GONNA HAPPEN
2014-09-04 03:03:11 · answer #9 · answered by Delores 1 · 0⤊ 0⤋
The bank (or their agent) can come and repossess whatever you put up as collateral. Also, they can garnishee your wages...and can ruin your credit.
Contact Consumer Credit Counseling and talk with them...they're a non-profit credit counseling agency who might can help you. (Make sure you've got the right one...there are a lot of for-profit companies out there using similar names.)
Good luck!
2006-12-08 09:03:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋