Bills Logo

Loans and Divorce

Get rid of your debt faster with debt relief

Choose your debt amount

$25,000
$1,000$100,000+
See if you qualify

Or speak to a debt consultant  844-731-0836

Bills.com Team
UpdatedJul 17, 2024

After our divorce, my ex didn't pay our car loan. Am I responsible?

My husband and I are separated. His car loan was under both our names. I assumed all bills but that one and have paid all consistently (with no more than 1-2 week late once in a while). He did not pay the car loan and car was repossessed. Approx. $3000 is unpaid. Am I held responsible for that?

The short answer is that you will likely have to seek legal counsel from an attorney in your area regarding loans and divorce. It is likely that you will have to pursue this account through a legal process, to force your husband to pay the debt. If you were a joint-borrower on the original account, the creditor will most likely pursue you and your husband to collect on the debt.

Creditors will not accept a divorce settlement as legally binding upon them, and they will pursue the co-signatories if the primary borrower defaults.

To read a longer, more detailed discussion of these issues, see the Bills.com resource Divorce Debt.

Get rid of your debt faster with debt relief

Get rid of your debt faster with debt relief

Take the first step towards a debt-free life with personalized debt reduction strategies.

Choose your debt amount

$25,000
$1,000$100,000+
Get started now

Or speak to a debt consultant  844-731-0836

Dealing with debt

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Housing debt totaled $12.82 trillion and non-housing debt was $4.88 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Each state has its rate of delinquency and share of debts in collections. For example, in Tennessee credit card delinquency rate was 4%, and the median credit card debt was $394.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.

SHOW SOURCE
arrow-down