Can my ex sue me if I have the bank repossess his car? 12 Answers as of October 21, 2014

I signed for a car for my ex and when we broke up he maintained the payments but refused to transfer the tittle because his insurance would go really high. I’m filing for bankruptcy and want to have that car removed as well. I would have the bank repossess it but I don’t know if he can come back and sue me for it. I just want to have it removed from my credit.

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The bankruptcy will discharge the debt for you. If the payments are not made the bank will repossess the car without your help.
Answer Applies to: Minnesota
Replied: 10/21/2014
Freeman Law Group, LLC
Freeman Law Group, LLC | Derek Freeman
First, in a bankruptcy you don't tell the bank to repossess anything. You surrender the property, and then the creditor does whatever it feels is in its best interests. As for whether your ex can sue you, it depends. Did you agree to maintain the title of the car in your divorce? If so, and if you surrender the vehicle, you may be in contempt of court. But there may be a better way to deal with this situation. You could sell the car to your ex for the amount of the loan, then transfer title over to him. It may make his insurance sky-rocket, but that's probably better than losing the car. You should talk with your lender about the situation and see what options there are.
Answer Applies to: Colorado
Replied: 10/6/2014
Stephens Gourley & Bywater | David A. Stephens
Do not have the bank repossess the car, just advise the bank that you are not paying for it due to the bankruptcy. The bank can then work with your ex to get paid, or repossess the car if it wants to.
Answer Applies to: Nevada
Replied: 9/30/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
File your BK. The obligation should be removed from your credit report. Be sure you indicate on your Statement of Intention that you intend to surrender YOUR INTEREST in the vehicle.
Answer Applies to: Colorado
Replied: 9/29/2014
Law Offices of Linda Rose Fessler | Linda Fessler
Go ahead and put it on the bankruptcy. If he keeps making payments they will probably not repossess, and you will probably own the car someday.
Answer Applies to: California
Replied: 9/29/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You can certainly discharge your obligation to pay the car loan. The harder question is whether your ex-husband would be able to come after you for failing to make the loan payments. You have to look at your divorce decree/separation agreement in order to determine who was ordered to pay the loan. Some agreements do not include any provisions like that, and many have a very clear division of debts as well as a provision that protects one former spouse from the failure of the other to pay what they are ordered to pay. Without reviewing the divorce papers it would only be a guess if anyone tried to answer that question for you.
    Answer Applies to: Colorado
    Replied: 9/26/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    If the bank is getting paid, they are not going to repossess just because you filed bankruptcy. Bankruptcy is many things but it is not a way to repair your credit. All bankruptcy will do is eliminate any possible liability you have to pay the vehicle. Your credit report will still show that this debt existed & that it was included in bankruptcy. Whether your ex might sue you for something is a good reason to list him in your bankruptcy.
    Answer Applies to: Nevada
    Replied: 9/26/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    No he can't. Its technically your car then you are cleared of that debt when you complete your bankruptcy.
    Answer Applies to: New York
    Replied: 9/26/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Now, insurance companies don't base their pricing on who OWNS a car, they base their pricing on who DRIVES the car. So, in order to got lower insurance rates, you ex has been committing insurance fraud by telling the insurance company that you drive the car while he (obviously a high risk) actually drives the car. Even if he had grounds for a lawsuit, he's probably not going start an action which will inevitably disclose to a judge that he's been committing felonies. When you file, disclose on your petition that you're not the one making the payments on this debt and list him as the person who's making the payments. By filing bankruptcy, you're relieved of the legal obligations from your old contracts. That would include any agreement you had with your ex to have a loan and car title in your name while he uses it and pays the loan. Consider that bankruptcy doesn't automatically take the car from you. It just means you're no longer responsible for making the payments but if your ex is making the payments, the bank isn't going to repo the car. If there's any equity in the car, then the trustee might take it, otherwise you'll still be on the title and he'll still be driving it and making the payments.
    Answer Applies to: Ohio
    Replied: 9/26/2014
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    He cannot sue you if you file for Bankruptcy, you must list all of your assets and debts when you file. And you are free to surrender any rights you have in the vehicle and include the loan in the Bankruptcy. If your ex was awarded possession of the vehicle through a divorce decree, you can give him the option of transferring the title to his name prior to your filing Bankruptcy, and he can work directly with the lender on making payments and keeping the vehicle. If there is not a Divorce Decree, you may need to file first to avoid transferring property to an insider. Then, let the ex worry about retaining the vehicle from the lender.
    Answer Applies to: Texas
    Replied: 9/26/2014
    D.J. Rausa, Attorney at Law | D.J. Rausa
    If you file for bankruptcy, you will not be responsible for the debt.
    Answer Applies to: California
    Replied: 9/25/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    When you file for bankruptcy, all your debts are extinguished immediately. You must list all your creditors including debts for which you co-signed. It is up to the bank to decide what to do when they receive your bankruptcy notice. You would state that you are surrendering your interest in it. You should also list your ex as a co-debtor on Schedule H, and include him in your creditor matrix. Thus, he would be subject to the automatic stay and would be prohibited from suing you for the debt, since he is in a sense a creditor. If he gives you any grief about it, tell him it's illegal for him to talk to you because of the creditor stay. If you want to be nice, you can tell him ahead of time that he needs to talk to the bank about taking over the loan. If your name is on the title, you should also list the vehicle as an asset on Schedule B, although you could claim just half of the equity if it will help you keep it exempt.
    Answer Applies to: Oregon
    Replied: 9/25/2014
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