Hello and thank you for allowing me the opportunity to assist you.
Q: I'm thinking I might not owe them anything as they surely had to write the debt off on their books when they released their claim in 2006.
I am a CPA. Should I continue to make monthly payments, consider the matter closed or what?
A: Unfortunately, it doesn't work that way. A write-off, as you know, is an accounting term used for bookkeeping and tax purposes. Unfortunately, it has nothing to do with liability. Even after a debt is written off, liability remains against the borrower. If they recover, then they adjust their books and taxes accordingly. Therefore, I'm sorry to say that even if the debt was written off, you are still liable since you are a guarantor.
Similarly, neither the bankruptcy nor foreclosure
affects your liability. The bankruptcy only affected your ex's liability since she was the party who filed for bankruptcy. The foreclosure merely means that the security (i.e., collateral) was sold to help pay for the loan balance. Anything left unpaid, however, remains as a debt.
If I were you, I would continue your efforts at trying to negotiate a settlement or payment plan. Of course, if the balance is large enough (or if you owe other substantial debts), then you may consider bankruptcy yourself.
I am truly sorry to give you this bad news, but please understand that it would be unfair to you (and unprofessional of me) to provide you with anything less than an honest response. However, if your concerns were not satisfactorily addressed, then please let me know, and I will be happy to clarify my answer. I do ask that you rate me based upon whether I answered your question, and not based upon whether the answer was good news or bad news. Your positive feedback is greatly appreciated. Thank you for using our service!
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