My ex-wife was given the car in the divorce settlement and was to keep paying it off. She stopped paying and filed bankruptcy on this car. The loan company came after me for the money which I paid. I was never notified she was going bankrupt on this loan. The first thing I knew of it was a letter asking for paymeny in full. I called the loan company and they told me she had gone bankrupt on it. It was in both our names. I now have the title and she has the car. How can this be right?

Unfortunately, unless you had your name removed from the loan you are still liable for the debt. The loan company, however, should have the right to seize the vehicle from your ex-wife, even if she is bankrupt, after which you would be liable for any deficiency balance. You may want to talk to the lawyer who handled your divorce about this.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca