I haven't received a call in two business days, and I’m feeling very nervous about what might happen next. My biggest fear is that my funds will be garnished or frozen.
To summarize: I cosigned a vehicle loan for my ex-partner under duress while we were married a few years ago. My ex stopped making payments a few months after we separated, and the car was repossessed and sold. The lender started contacting me again two weeks ago; I provided them with my ex's updated contact information (which they already had on file) and requested that they cease phone contact.
The deficiency balance is approximately $11,000. I am considering calling them this week to see if I can defer payments until September. I could potentially afford $250 a month starting then, but I truly do not want to be held responsible for this debt. My ex earns approximately $4,800 a month and hasn't made a car payment in eight months, which suggests they should have significant savings.
I want my ex to take responsibility for this debt. Should I contact the lender now to set up a payment plan and stall for 60 to 120 days? My hope is to settle this in the divorce and have the court order my ex to pay. I understand that even with a court order, the lender still requires payment from a responsible party, but stalling until September would put me in a much better financial position.
Any advice?
Navigating a Post-Repossession Deficiency Balance During Divorce
byu/Final_Minimum1443 inpersonalfinance
Posted by Final_Minimum1443
1 Comment
Yeah, tough spot, but the key thing is this: as a co-signer, the lender can legally go after you, regardless of what your ex should be doing. Stalling without communication can make it worse (fees, collections, possible legal action). It’s usually better to call them now, explain the situation, and ask for a temporary hardship plan or payment arrangement.
At the same time, push this hard in the divorce so your ex is assigned the debt… just know that’s between you and your ex, not the lender. Goal right now is to protect yourself short-term (avoid escalation) while sorting the long-term responsibility in court.