We dated 8 years and engaged for 7. Little by little, he asked me to finance this or that. In the 8 years, he always made a lot of money (self employed). I never thought it would be a problem. Then, he broke up with me. He promised to continue to pay these things and hasn’t. Several things have been repossessed. He has caught up a few things that he still wants to keep. He has ruined my credit. I have never been even a few days late on my bills. I am no longer able to help my children in college. I am worried I will have to go bankrupt and they will take my
money to attempt to pay this debt. I have done nothing wrong, except trust him and try to help him when we were together. Now, he has ruined my credit and made it difficult to help my college aged children and raise my youngest child.
You will have to take this as a life lesson: don't lend money to friends or relatives and NEVER co-sign on a purchase for anyone.
You could file for bankruptcy, but this is drastic if you don't have other very significant debt.
When or if the car is repo'd, the lender will sue you for the difference between the auction sale price and the loan balance. A creditor must sue you, personally serve the suit papers to you, wait for you to answer. If the creditor wins (they don't always win), then it gets a judgment. That is not the end of the world.
Keep in mind that Texas is an extremely debtor friendly state. Nobody gets your house except the lender and the IRS. Nobody gets your car except the lender and the IRS. Nobody gets your wages except the IRS and child support. Nobody gets your Social Security/disability/ pension/retirement/401k/IRA except the IRS. Most people don't have any thing more than that, so there is nothing to get to satisfy a judgment. HOWEVER, a judgment is good for 10 years and can be renewed. Also, the judgment is accruing interest and is being reported to the credit bureaus. The creditor is hoping that one day you will have some money saved for a large credit-based purchase (car or house). When you apply for that loan, the judgment creditor will learn you have cash and will then try again to get you to pay. Luxury items such as motorcycles and boats and cash on deposit in banks are not protected. Even then it is possible to file bankruptcy to avoid payment.
Because a homestead can't be taken to satisfy a judgment unrelated to the mortgage or taxes, the judgment creditor must give a partial release with respect to the home if you request it in writing. This is necessary if you plan to buy, sell, refinance, or take a home equity loan. If the creditor will not release on request, there is a statutory process to go around the judgment lien. This does not mean you don't owe the money, just that the house can't be held hostage to the judgment.
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