My Car Went Missing From My Driveway Because My Ex-Husband Didn't Make The Payments.

“Dear Steve,

Hi, I am married, but I recently filed for chapter 7 in Dec. 08. individually. I was able to keep my house and car as long as I continued to make the monthly pymnts. About a week ago, to my surprise, my car was no longer in my driveway. The bank repo my car, for payments that were 120 days past due. My husband was not making the payments and kept it from me.

Also, he stopped making payments on my mortgage that I was unaware of. When I confronted him, he said that he was too afraid to tell me. Now, I just received a letter from the bank from where I had my car loan from and they are auctioning off my car and will sue me for the damages that are uncollected. I also contacted my mortgage company and they said that I would need to come up with $10,500. by Feb.1 09 if I would want to keep my house.

If I knew, before my bankruptcy that the mortgage and car was not being paid, I would of added them to my chapter 7. Now I’m scarred of the unknown and not sure what to do. Your insight will be greatly appreciated. Thank you.

My question is… Will I now be sued from my mortgage lender for the remaining balance once my house goes into foreclosure? (since it wasn’t added into the bankcruptcy)

Is it too late to add it into the bankruptcy, since my bankruptcy was not discharged yet?
and also my car balance, once it sells in an auction and I’m sued for the difference…Can I add that to the chapter 7 also?
( I had my appt. with the Court Trustee in December , waiting for the discharge).Is there anything I can do at this point?

Thank you

Lynn”

Dear Lynn,

Your situation is sadly very familiar, one that I seem to write about a lot. People don’t understand that when they divorce their spouse and there is an agreement about who pays what, that is not binding on your creditors. That is an agreement between the people getting divorced.

I am assuming that the car and mortgage debts were joint debts. In that case the lender should go after both you and your ex-husband. I know, small comfort at this time.

What you need to do right now is pick up the telephone and call your bankruptcy attorney and explain your situation and ask for advice. A modification might be able to be made but only your bankruptcy attorney can advise you where your case is in the process.

[UPDATE: See this article for updated information on this.]