Ask The Banker: Repaying loans after a divorce

KEZI 9 News talked to Oregon Pacific Bank CEO and President Ron Green to learn more about shared loan responsibilities following a separation or legal divorce.

Posted: Dec 10, 2018 6:22 PM

EUGENE, Ore. -- Following a divorce, financial responsibilities may be unclear.

KEZI 9 News talked to Oregon Pacific Bank CEO and President Ron Green to learn more about shared loan responsibilities following a separation or legal divorce.

Do I have to pay back a car that I lost in my divorce?

When there are two parties -- a husband and wife -- who are co-borrowers on a loan, even though the house or car may go to one spouse following a separation or legal divorce, both individuals are still obligated to pay the loan back.

The bank has the legal right to seek recourse against a person, even though they might not have the house or car. Green said it’s an unfortunate situation.

Regarding how you pay bills back, if you’re uncomfortable with that or even how to afford to do so, Green recommends talking to the bank.

It’s possible the bank will work out a payment plan with you or seek out the assistance of a third-party credit counselor. They’ll provide great advice on how to manage the debt.

If you have a banking or finance question for Green, click here.

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