Separated: Joint Personal Loan AC

[leon38]

Would appreciated some advice on the following:
Received a Personal Loan (Joint account) in Feb '03. Monies used to purchase a new car.
Wife & I separated in August 2004, Wife held onto car & continued payment on loan from her own personal account, until Jan '06 when she stopped payments (Due to difficulties, She even changed car to a 05 model in 2005).
Bank issues me a letter (In both names, but to my address only!) in mid 2006 stating that account is in arrears & what I propose to do about it. Wife resumes payments in Aug '06, but only @ €70/mnth (Orig €360/mnth).
I paid arrears on loan in amount of €1454, as it was begining to effect my credit rating. (A once off I thought!!) At Judicial separation settlement talks Dec '06, I agree to pay maintenance to wife until property situation is straightened out on condition that she takes sole responsibilty for the outstanding loan.
Last week I get another letter from bank, followed by phone call to my place of work, stating that loan is again €1325 in arrears. I was issued with threats of Sherrif Solicitors etc etc... The outstanding balance is approx €6500.

My solicitor seems to think this is a small matter when taken into consideration against the separation agreement as a whole. But this account is like a millstone around my neck & is effecting my personal finanaces (Cant even get a cheque book now because of it).

I suggested that I pay it off in lieu of Maintenance, but solicitor says I must continue to pay her the agreed weekly sum.

It appears that I am the only one being held accountable & yet I have received no material benefit from this loan. My wife continues to drive a 05 car & i drive a 1997 banger!!

Help!!!

 

[Cashstrapped]

Hi Leon, have you spoken to your ex about both of you going into the Bank to change the Account into her name only, that should eleviate the problem for the time being until the separation is agreed. I would push your solicitor too to have the amounts paid by you deducted from the proceeds of the sale of your house or whatever agreement you reach. When she changed the car in 2005 did she go a refinance route on the loan you already had, if so you could probably argue with the Bank that they should not have given it to her without your signature on the loan documents if it was a joint account therefore their contract is with her and it is only her that is liable for the loan and she refinanced the original loan so they need to send the letters to her and change the Account into her name only. Messy situation when things go wrong but as far as I know once you have both signed for a loan you are liable, I know I was when my marriage broke down and my ex-h lived in the family home for almost a year without paying the mortgage but I was liable to pay half with interest when it was sold just before being repossed.