I cosigned for some student loans for my Ex wife and she is now a deadbeat

[cdthomp]

Several years ago my ex took the maximum number of student loans under her name and now was required to have a co-signer to consolidate for a lower rate (according to her). The consolidation included both of our loans (95% hers, 5% mine). Unfortunately my ex had a spending problem and started to run both of our credit cards (mine without my knowledge). After this happened 3 times, I decided to file for divorce and asked her to take the entire consolidation in exchange for my credit cards that she spent against (agreed in the divorce decree). After several months of no contact, I found that she made no payments and my credit was trashed. Finally when I found her contact information a year later, she gave one excuse after another and would pay the minimum interest only for the next year. I have little faith that she will pay these loans or take them under her own name. Could you advise on any legal actions that I could take if she decides not to pay on these loans?

 

[Proserpina]

If you want to preserve your credit, as co-signer, you'll pay the loans and then sue her for reimbursement.

However...if she's truly a deadbeat your chances of recovery are very slim unfortunately.

With that said...what were the actual terms of your divorce decree?

 

[cdthomp]

The terms of the Divorce Decree stated the following regarding her student loans:
1) Make best efforts in taking the loans under her own name within 15 days
2) Hold me harmless against any collection activities

She reported that she joined Nursing school and perhaps would find stable employment afterwards. I hope that she is telling the truth but its hard to say as I have little visilbility in her life.

 

[Proserpina]

Well, the loan company/s aren't privy to the divorce...so if she doesn't pay, they can come after you.

That part of your decree isn't enforceable against any collection agency.

Sorry I don't have anything more encouraging.

 

[mightymoose]

You have two options that I can think of.
1. As mentioned above, pay off the debt and sue her for the damages. You are unlikely to collect on that judgment though, so it is understandable that you would not want to pay off the debt.

2. Don't pay the debt. If you are contacted by a collection agency you can do your best to refer them to her, but they will be legitimately coming after you as a co-signer. If you are lucky the statute of limitations will pass before a collection agency gets a judgment against you... and then you will just have to wait out the 7 years for the credit report to clear up.

Do yourself a favor and enter a statement on your credit report that explains the issue with the debt.