Legal Question in Credit and Debt Law in Indiana
Responsibility for debt
I have just suddenly had 25% of my earnings garnished by a finance company that says that I was a co-signer on the loan my ex-fiance' and father of my child (who pays no support) had. We were together when he got the car, I remember it well. The car salesman convinced me that I wans't co-signing, it was just a credit reference. I signed some papers, but don't have them. I have requested them from the lawyers at this point. I got no notification of this garnishment, or even of the suit against me. However their was a default judgement based on their evidence that I was served with the documents (they didn't even have my correct address). The car was reposessed and my ex has apparently done nothing to take care of this but file for Chapter 13 one time and quickly fell out of it. What are my options? At this point I can't even pay my house payment and he's just running free, they haven't even gone after him.
2 Answers from Attorneys
Re: Responsibility for debt
Most likely you co-signed the loan for the car. You may be able to set aside the default judgment if you can prove that you werent served AND that you have a meritorius defense. The fact you thought you were only signing as a credit reference probably wont wash unless you have eyewitness testimony to support your claim.
The finance company just wants to get paid so they may be willing to workout payment arrangements or take a lump sum settlement for less than the full amount. By the way, any money you pay, your ex is liable to you for since you have a right of contribution. Good Luck!
Re: Responsibility for debt
It sounds like you have really been taken advantage of. In brief, you would probably stand good chance of having the default judgment set aside since you did not have adequate notice. In order to do this you also have to have an underlying meritorious defense to the claim, which I believe you do, based upon fraud. Once the judgment is set aside, the case would be set for trial. You and your attorney could then do some discovery and formally request copies of the original documents which were signed. You may also consider bankruptcy as another option if you are otherwise heavily in debt and do not wish to go through the hassle of dealing with the case. These are my initial thoughts. If you would like to discuss this matter further, please call me.
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