What can I do if my ex boyfriend stopped making payments on a car I let him buy with my credit? 9 Answers as of December 07, 2011

It is unclear from the information you provided who is liable for the note. When you say your boyfriend bought a vehicle using your credit I assume that either the vehicle was financed in your name alone or that you are obligated jointly with your boyfriend for the note. In either case, you are liable for the note and in the event of a default, the lender can look to you for payment. In the event of a default, the lender will typically first repossess the vehicle and then sell it at a private sale. If the vehicle is not sold for enough to pay off the note, the lender can then pursue you for the deficiency balance. If you do not pay the deficiency balance, the lender can sue you and obtain a judgment. Once the lender obtains a judgment, that lender can then levy on your bank accounts and garnish your wages. Before the lender can sue you for a deficiency, they must first perfect their claim by sending to you at the address on the contract or to any address subsequently provided to them in writing a letter setting out your rights which include the right to redeem the vehicle and the right to demand a public sale of the vehicle. If the lender does not mail you this letter within ten days of the date of repossession, then the lender is prohibited from collecting the deficiency. I suggest that you attempt to sell the vehicle yourself and pay off the note from the sale proceeds. If you are unable to sell the vehicle for an amount sufficient to pay off the note, I suggest that you hire counsel to negotiate a settlement with the lender and to discuss other options that may or may not be appropriate depending upon your specific financial situation.

From the information you posted, it appears that the debt is under your name, and hence you can be held legally responsible for the debt. You should seek out the assistance of an experienced attorney who can review the details of the matter and advise as to the best manner in which to proceed to protect your future credit and legal rights.

With respect to you allowing the use of your credit that is most likely an unfortanate event unless some type of fraud was done like opening an insurance policy under your name. You need to notify the credit bureau of the fraud and put a freeze on your credit.

If you co signed, then you are just as liable for the deficiency after the repossession. You could file a bankruptcy to discharge your liability.

Unfortunately your agreement to pay the car is with the creditor. The creditor never agreed for your ex boyfriend to pay for the car. You will be liable for any deficiency after the car is repossessed. You potentially might have a claim against your boyfriend

Unfortunately, if you co-signed on the vehicle, you are financially responsible for the deficiency.

When you agreed to the debt for the car, you were the maker or perhaps co-maker of the debt. Either way, you are liable for the debt. If the car is repossessed and sold, they will credit the proceeds against the debt and you will be liable for the difference. You can usually settle with the bank on the shortfall if you can come up with some cash or if you agree to make payments to get it paid off. If you filed bankruptcy, this would discharge your liability for the debt but if this is your only financial problem, that is a big step. As to the insurance, you should contact the agency right away and cancel the policy. Make sure they have your address for any refund due on the policy. However, if there is insurance on the motorcycle in your name, that would indicate the motorcycle loan is in your name as well. The insurance company would have the finance information regarding the owner and financial institution. Since you didn't authorize the motorcycle purchase, he has committed a crime for identity theft and bank fraud. If you find that to be the case, contact local law enforcement.

Unfortunately, if you signed for the credit and the debt is in your name then you owe the debt. Even though your boyfriend was making the payments, the creditor will hold you liable for the whole debt and will most likely file a lawsuit against you for the deficiency.

You'll probably need an attorney involved in this one. By allowing him to purchase with your credit, you effectively gave him permission to leave you accountable. Other than paying off any debts they come after you for, the only other option would be to either get a judgment against him, or to bring him in as a third-party defendant in any action against you on his debts. The insurance thing should be easier - contact the insurance company; if you didn't provide consent to that transaction, then he's committing identity theft.