What to do when your Spouse is in Debt
Many people do not realize that when they spouse has credit card debt and debt collectors are calling, it could put your assets in danger too.
If your spouse defaults on his/her credit card payments, the debt doesn’t necessarily become yours unless you’re a joint cardholder. But, you may still have to pay up once the debt goes in to collections. As collectors call, if they are unsuccessful in collecting the debt, their next step could be to take you to court.
Wage Garnishment. One outcome of going to court is having your wages garnished to pay back the debt. While this doesn’t come out of your paycheck it does affect the amount of income coming in to the home.
Equitable Division States. In an equitable division state, creditors generally cannot touch a spouse’s separate assets. All but 9 US states are equitable division states, these operate under a community property or sharing of assets whereby and spouse’s assets are considered fair game if those assets were acquired during the marriage.
Assets brought into the marriage however remain separate until they are comingled. This refers to a spouse using money they brought in to the marriage to purchase an asset. That asset is then considered comingled property.
my ex-spouse car was repo and she filed bankrupthy and got the car back but her bankrupthy was dismiss for failure to pay i am the co-siginer on the vech she has a job at the post- office an i’m not working now will they go after her first
derrick dobbins
October 5, 2009