Legal Question in Bankruptcy in Tennessee

Divorced, Spouse paying off vehicle, bankruptcy

My 1st wife and I divorced in 2002. She kept the new car and payments. My name is still on the loan. My new wife and I are filing bankruptcy. Will my name be removed from the car loan or will she have to refinance the loan? Can she continue to pay the loan without refinancing? The bank currently owning the loan told her that it would be the same as her filing, is this true? She lives in Fla. The bank currently owning the loan does not want to refinance her,saying she is ''out of their region''. What does she need to do to keep the car and protect her credit? She wants the car and has made the payments the past 2 years. She has also remarried.


Asked on 4/14/05, 1:44 pm

1 Answer from Attorneys
Autry Jones Jones & Landers, Attorneys At Law

Re: Divorced, Spouse paying off vehicle, bankruptcy

If you are filing a chapter 7, the plan that discharges your debt, you will no longer be required to pay the car loan. This does not erase your ex-wife's liability. She still remains obligated. The financial institution then has only one person to go after for the loan. You MUST include this debt in your plan. The financial institution cannot may not like it, but, there is nothing they can do about it. NO. It is not as if your ex-wife filed bankruptcy also, only you as it relates to this loan.

If she wants to refinance she could do it through anothe financial instituion, if these folks are such butheads. But your filing in NOW WAY affects her.

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Answered on 4/14/05, 9:13 pm


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