Legal Question in Credit and Debt Law in Texas

Auto Repo

My husband signed for an auto loan for his ex-wife after they were divorced. Her name appears as the co-owner on the loan. She made all of the payments and carried the insurance. The car was purchased in Alabama in '05 and she had exclusive use of the vehicle. This past April she stopped making payments and the car was repossessed . Since this is a joint account, is my husband responsible for 100% of the remainder of the loan? Do we have to repay the remainder of the loan and then sue the ex for her portion. The ex now lives in Mississippi and my husband and I reside in Texas. Which state's laws apply ?

When my husband was originally notified verbally and via mail by the finance company he copies of the loan contract, pay off amount, etc. each time he was told they would not be mailing him anything as it was ''private'' info. This even after he threatened to report them to the FTC. After 2 months of phoning them and speaking to various people from their offices we consulted an attorney and he requested copies of the loan docs, however, before the loan docs arrived we received a letter stating that the car was already repossessed. We now realize we could have taken possession of the car and resold it.


Asked on 9/22/08, 10:27 pm

1 Answer from Attorneys
TC Langford Langford Law Office

Re: Auto Repo

It is a complicated and unfortunate series of events, however, at this point his recourse is to sue her for the balance on the loan, because the finance company will coming looking for him on the deficiency.

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Answered on 9/25/08, 3:59 pm


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