Legal Question in Credit and Debt Law in Wisconsin

Co-Signer Liability for Car Following Death of Primary Borrower

In WI, spouses are generally liable for debts of their spouses under the marital property law, and this would include your husband's liability as a cosigner as well as the buyer's s liability for her deceased husband's obligations on the note. Therefore, both of you are likely to be sued by the bank. You need to retain an attorney as soon as possible who has experience both in bankruptcy/marital property matters and in probate matters. The first advice which the lawyer would likely give you is to obtain possession of the vehicle so that it can be sold and the proceeds applied to the debt. Liability for a cosigner is not conditioned upon having possession of the vehicle, however, the ability to resell it. Sometimes, a cosigner would be on the title and hence have ability to sell the vehicle once he has secured possession of it. You may need to be appointed by a court as personal representative of your deceased husband's estate before you can do any of this. Commencing a probate proceeding for your deceased husband may have another benefit in creating a deadline for creditors to present claims. If the bank does not pursue this remedy in a timely fashion, the claim may be barred.