Legal Question in Credit and Debt Law in Georgia

If a co-signer could get out of the obligation when the other borrower stopped paying, the contract would be meaningless. This is the very reason the lender asked her to sign, and the very risk she willingly accepted. To protect her credit, she probably need to start making timely payments. She can then go after her ex in the divorce case for any money she has to pay.

Co-signers cannot break the contract they made with a lender. To protect her credit she may have to make the payments, as she promised when she co-signed. The divorce has nothing to do with that contract. What she can do is solely versus her ex, and that is to get a lawyer and sue him for contempt.

I agree with my colleagues. Co-signing was dumb. If a man needed a co-signer it meant that he had lousy credit to begin with. The girlfriend cannot get her name off of the loan. Her options are: (1) to start paying for the car to protect her credit; (2) buy the car from her ex-husband and get the car refinanced in just her name; (3) get the ex-husband to pay timely; (4) file bankruptcy; (5) get the ex-husband to refinance in just his name (unlikely) or see if the lender will permit another co-signer to be substituted (also unlikely); or (6) not pay at all and the car will be repossessed. The repo will be on your girlfriend's credit report. She can then resolve the debt should the lender come after her for the deficiency.

The other part of your question relates to the divorce papers. Your post is not clear - did she co-sign before the divorce or after the divorce? If she co-signed after the divorce the divorce papers are not relevant. If she co-signed during the marriage then she may have another option. If the ex-husband was ordered to pay this debt in the divorce papers and if he has failed to keep up the payments, then your girlfriend may be able to go back to family court and have order enforced through the contempt powers of the court. The court may order the husband to transfer ownership of the vehicle to your girlfirend - at least that way she can own the car if she has to pay for it and can sell or trade it in to protect her credit.

The girlfriend needs to talk to her divorce lawyer if this is the case.