How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Phillips Esq. Your Own Question

Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12934
Experience:  B.A.; M.B.A.; J.D.
16551887
Type Your Bankruptcy Law Question Here...
Phillips Esq. is online now
A new question is answered every 9 seconds

The situation is my best friend applied for a joint car loan

Resolved Question:

The situation is my best friend applied for a joint car loan while she was married to her ex husband, then they had a very ugly divorce and in the divorce paper he took ownership of the car and he has been paying for it with money he is getting from my friend since he does not have a job or money.
Now he is threatening to file bankruptcy and she is afraid that the car loan will be her problem and her credit will be ruined because she has to pay off the car or the loan will be reported as in bankruptcy on her credit report.

What can she do to protect her credit and money?
I believe the players are loan debtors, ex husband (non cooperative) and credit report agencies

thank you for your help
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 4 years ago.

 

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

The situation is my best friend applied for a joint car loan while she was married to her ex husband, then they had a very ugly divorce and in the divorce paper he took ownership of the car and he has been paying for it with money he is getting from my friend since he does not have a job or money.
Now he is threatening to file bankruptcy and she is afraid that the car loan will be her problem and her credit will be ruined because she has to pay off the car or the loan will be reported as in bankruptcy on her credit report.

What can she do to protect her credit and money?
I believe the players are loan debtors, ex husband (non cooperative) and credit report agencies

 

Response: The only way to protect her credit is to find money to pay off the car. Otherwise, once the ex husband files for bankruptcy protection , the car would be reported as in bankruptcy on her credit report. Also, if the ex husband is filing under Chapter 7, your friend would be solely responsible for the payment on the car if the ex-husband bankruptcy is successful--that is, if he gets a Bankruptcy Discharge.

 

However, since this a property settlement, she can sue her ex-husband to force him to pay her back the money that she paid on the car. Marital Property Settlement Agreements are not dischargeable in Chapter 7 bankruptcy and only dischargeable in Chapter 13 case after completion of the Chapter 13 plan. See 11 U.S.C. Section 523(a)(15)

 

I am sorry that I do not have better news.

 

 

Customer: replied 4 years ago.
Okay, so if the ex husband is motivated to cooperate,

can she take ownership on the car and make paynments, without credit trouble if he does not include the car in his bancruptcy, or she would be in trouple anyways if he files, even not including the car loan in the filing?
so does she really have to come up with the money before he files?

Can she remove his or her name from the loan if they both agreed to do that?

Thank you again these answers will be very helpful
Expert:  Phillips Esq. replied 4 years ago.
Okay, so if the ex husband is motivated to cooperate,

can she take ownership on the car and make paynments, without credit trouble if he does not include the car in his bancruptcy, or she would be in trouple anyways if he files, even not including the car loan in the filing?

Response 1: Once the husband files for bankruptcy protection, the account would show on credit report as being in bankruptcy. Even if she pays off the account at that time. Alos, even if the car is being paid off, her ex husband must list the debt on his bankruptcy schedules.

so does she really have to come up with the money before he files?

Response 2: Yes. That is the only way that the account would be reported as being paid in full and not discharged in bankruptcy.

Can she remove his or her name from the loan if they both agreed to do that?

Response 3: No. That is not up to both of them. It is up to the lender. The only way her name can be removed is if he trades in the car and pays off the loan.

Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 12934
Experience: B.A.; M.B.A.; J.D.
Phillips Esq. and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.