Legal Question in Bankruptcy in Tennessee

legal responsibility for a debt

My husband and his ex had a car, that according to their division of property she was to keep and pay for, decree also stated that neither could file bankruptcy, but she did. She neither reaffirmed nor filed bankruptcy on this car. She contacted my husband, prior to our marriage, stating that the car had been picked up to be auctioned the next morning and he could go bid if he liked. Not enough notice. The bank unaware, apparently of the divorce, never contacted him about late payments or repossesion of the car. It was sold leaving $8100.00 due. This is now on his credit report and when he contacted them to work out some settlement with them they were unwilling to accept and contacted a collection agency. Since she or the creditor apparently failed to do something,{how do you keep a vehicle in a bankruptcy without re-affirming and why did the creditor allow that?} do we have any recourse other than contempt of court {based on divorce decree} in order to avoid paying her debt and to clear his credit?


Asked on 3/21/05, 12:11 pm

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: legal responsibility for a debt

It seems unlikely from what you have posted that the creditor was under any obligation to do anything. In some cases (although usually not with a car) the spouse keeping possession of the property is required to refinance the debt out of the other party's name. This avoids the type of problem you are experiencing.

In the absence of that occurring, the creditor is fully justified in pursuing the debt against your husband. The only way to deal with it of which I am aware(and it presents an imperfect solution) is to pursue the contempt complaint against the ex.

Read more
Answered on 3/21/05, 12:22 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Tennessee