Legal Question in Credit and Debt Law in New Jersey
I am a co-sign on auto lease(when married), ex has since filed BK 7.
When I was married I was a co-signer on an auto lease in KY(bank is in KY). The ex made all payments and turned in the auto after moving to NJ. However, there is money due for excess mileage and wear and tear,etc.. I just received a call from a collection agency stating that I am responsible for the monies due since the ex filed chapter 7 in KY (after we were divorced). In the divorce agreement it was stated that the ex was responsible for the auto lease, but does the bankruptcy change all of that? I fear the worse.
2 Answers from Attorneys
Re: I am a co-sign on auto lease(when married), ex has since filed BK 7.
Assuming that the charges are proper under the auto lease, the lessor is within its rights to look to you for payment. The divorce degree could not affect those rights. However, if you pay anything to them, you are entitled to the benefit of the divorce decree to the extent that it applies. Since the decree specifically said that she was to pay for the car, you can demand reimbursement from her. You should also be able to withhold that amount from any payments you are making to her but check first with a KY lawyer who has read the divorce decree before you do that.
See also: http://info.corbettlaw.net/lawguru.htm
Re: I am a co-sign on auto lease(when married), ex has since filed BK 7.
I agree with Mr. Corbett. This is a very common situation. I suggest you follow his advice, no need for me to repeat it.
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