During my husbands divorce, there was a agreement made that his ex-wife was to be responsible for the debt of the trailer they had owned. His ex-wife, as long as she kept the payments current, would own the trailer. Now the mortgage company is calling my husband because his ex-wife declared bankruptcy. But the trailer has been sold twice this year. What are we to do?
Your husband should contact the attorney that handled his divorce to determine his obligations. The first question is, what did the divorce agreement provide for? If it provides that she is to be responsible, your husband could sue her, but if she is declaring bankruptcy, what is the likelihood of such a suit providing any benefit? Your husband should also consult with a bankruptcy attorney quickly (there could be strict deadlines) to see if he needs to file a claim regarding this matter against her. Next, what was done concerning the trailer loan as part of the divorce settlement? If your husband's name as a co-signer on the mortgage with his ex-wife was formally released from the loan documents, then sending copies of those releases to the lender might resolve the entire issue. If he was not released, then he may in fact still be liable on the loan. The lender is probably not bound by the divorce arrangements between your husband and his ex-wife. Liabilities in divorce can be really thorny and troublesome and are too often overlooked while everyone focuses on dividing assets. Your husband needs to get legal help in a couple of disciplines, just try to estimate if the costs of the remedy might exceed the cost of just paying the loan. Not the result you want, but an option you should also evaluate your husband's attorney. Good luck.
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