Legal Question in Bankruptcy in Wisconsin

Yes, you should most definitely worry about this development since it probably means that the bank will sue you if you do not take over the payments on your ex-wife's car. By cosigning, you agreed to make yourself liable for the debt, and defaulting on this type of a debt can do just as much damage to your credit as it would for a primary signor on the car loan. The bank can garnishee your wages, seize your bank accounts and other property and/or create judgment liens against any real estate that you own. Judgment liens would prevent you from selling the real estate or refinancing it unless you paid off the lien. In short, if you have anything to lose, you owe it to yourself to at least schedule a free initial consultation with an experienced bankruptcy lawyer, who can spell this out in more detail and advise you on the potential benefits of filing your own bankruptcy. While you may also have rights against your ex-wife in family court (based upon debts assigned in your divorce), creditors such as this auto lender are not bound by your divorce settlement. They can therefore go after either or both you and your ex-wife, depending upon who is the more attractive collection target. My comments in this public web forum are intended only for public educational purposes and not as legal advice for you. You therefore should retain your own attorney as soon as possible, since time limits can apply to many different types of legal matters which could severely harm your case if they expire without receiving proper attention in a timely fashion. However, you are also welcome to contact me at my office in Racine if you wish to discuss this matter further.