What to do if you have a car loan with an ex?

What to do if you have a car loan with an ex?

Your options when you’re stuck on a loan with an ex: Refinance the loan. Sell the car. Trade in the car. Keep the car, make the payments, and pay it off. Let the bank repossess the car. File bankruptcy.

What to do if you are co signed on a car loan?

Still, the good news is that you can usually get you or your ex off a co-signed loan. Your options when you’re stuck on a loan with an ex: Refinance the loan. Sell the car. Trade in the car. Keep the car, make the payments, and pay it off.

What happens if someone borrows from you to buy a car?

If a person borrows money from you and uses it to buy the car, ideally, your name should be on the title as a lienholder. If you do this, you assert your right to reclaim the vehicle in the event that the person who borrowed from you doesn’t repay the auto loan.

Can you buy a car for someone else?

In this instance, you may buy a car for someone as a gift or purchase the vehicle for them under a loan agreement. When you do this, you must be careful about whose name remains on the title. If you put the car entirely in someone else’s name, you may forfeit ownership rights.

What happens to your car loan when you file bankruptcy?

When you file for Chapter 7 bankruptcy, and you have a car loan, you must indicate in your bankruptcy paperwork whether you intend to keep the car or give it back. If you want to keep it, you’ll have to pay for it, and one of the ways you can do so is to enter into a new contract with the lender in a process known as reaffirming the car loan.

Can a car loan be reaffirmed in Chapter 7?

Chloe reaffirmed the loan on her car in Chapter 7. Six months after her Chapter 7 discharge, Chloe defaulted on her payments. When the lender repossessed the car, Chloe owed $10,000. The lender sold the car at auction for $6,000 and incurred $300 in auction fees.

Is the ex responsible for the car loan after a divorce?

After you divorce, you might think that you own your car outright because the divorce decree states that you are the sole owner. However, your ex is still responsible for the debt if their name remains on the car loan.

What can I do if my ex-spouse fails to pay my truck loan?

As long as you remain on the loan agreement, the lender can pursue all legal collection actions, including filing a collection lawsuit against you if your ex-spouse fails to pay the truck payments. If the lender pursues you for the debt, you can take your ex-spouse back to court.

What happens if you co sign on a loan with an ex?

Obviously, no one co-signs thinking the other person on the loan is going to be a an “ex” at some point in the future. When that changes, finances can suffer. Still, the good news is that you can usually get you or your ex off a co-signed loan. Your options when you’re stuck on a loan with an ex: Refinance the loan.

Your options when you’re stuck on a loan with an ex: Refinance the loan. Sell the car. Trade in the car. Keep the car, make the payments, and pay it off. Let the bank repossess the car. File bankruptcy.

Can a bank turn a car over to an ex?

If you own the title, it’s your car. If you hold the loan, it’s the bank’s car, with the expectation that they will turn the title over to you when you finish paying off the loan. If your ex’s name The registration can be in a different name than the title is.

After you divorce, you might think that you own your car outright because the divorce decree states that you are the sole owner. However, your ex is still responsible for the debt if their name remains on the car loan.

What happens if my ex has the title to my car?

If you own the title, it’s your car. If you hold the loan, it’s the bank’s car, with the expectation that they will turn the title over to you when you finish paying off the loan. If your ex’s name is on the title and yours isn’t, or on the loan and yours isn’t, it’s her car, regardless of who paid for the license plates.

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