Can I sue my ex-spouse who defaulted ona loan thatI co-signed for them, if the creditor is now demanding payment from me?

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Can I sue my ex-spouse who defaulted ona loan thatI co-signed for them, if the creditor is now demanding payment from me?

My spouse and I separated. She filed Chapter 7 and included a debt consolidation loan that I co-signed for her. We are currently filing for divorce. Can I sue her to pay the creditor who is now coming after me for the debt she defaulted on?

Asked on August 10, 2011 New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the creditor ends up suing you for the obligation you co-signed for your ex-spouse you can bring your ex-spouse into the lawsuit on a cross complaint for "indemnity" claiming that since you are obligated on a loan that you co-signed for her, she is liable to you for any monies you are ultimately responsible for under the loan where she was the primary beneficiary of it assuming she does not get this obligation dicharged in bankruptcy.

However, since she filed for Chapter 7 bankruptcy protection, you need to file a creditor's claim as to her for this loan as well. If you do not, her obligation to you concerning this loan will be wiped out in her bankruptcy assuming she obtains a discharge.

To help you on this possibility, you need to review your final marital dissolution agreement and order assuming you have one. The dissolution agreement may mention this obligation and whose obligation it is.

You should consult with a bankruptcy attorney about this situation with your "ex-spouse" and the loan you co-signed on for her.

Good luck.

 


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