Rebuilding Your Credit

[starry1]

Maybe this should be in the relationships forum, but its more about rebuilding. A friend of mine is going through a divorce, unfortunately in a community property state. She's an attorney, her ex owns his own body shop and he's a horrible spendthrift. Over the years he has repeatedly opened joint accounts without telling her and that's a big part of the reason for the divorce. She was recently served with judgment papers over yet another debt she didn't know about. She got debt validation, but can prove that she was out of the country on the date her signature was forged, but it doesn't matter all that much because she currently knows of about $280k in unsecured defaulted debt so far. She's aware that he won't pay his bills so they will come after her and she won't always have ready proof that she was an injured spouse. Any suggestions for her other than bk? She's too nervous to post for herself, but she will read the replies.

[Kevin5974]

Is she currently IN divorce proceedings? She should show proof of this to the courts. The judge can order him to pay and that order can help protect her if they pursue her for the amounts.

[guiness56]

Were the accounts opened while they were legally married?

I would start by filing charges of fraud against him.  She may not want to but, it would be a sure way to keep her from being a responsible party if she can prove the forgeries.

What state is she in. 

$280K that she is responsible for or that he did without her knowledge?

[starry1]

Yes, they've been separated at least 18 months or so and the divorce has been filed.

. That $280k are mostly loans he took out for his business, but the creditors are coming after her anyway. The known forgery was a cc.

[Kevin5974]

But is it finalized? Either way, file an ex-parte and inform the presiding judge

[starry1]

And yes they were married and living together for all or nearly all of the debt. Yet another reason why everyone should monitor their credit. I'm one to talk because I didn't either until a few months ago.

[starry1]

So update, she filed a police report and forwarded a copy of it to the creditor. Hopefully, they will delete it and stop the judgment proceedings. Her lawyer believes this will help in settling the divorce some, but she will still be liable for a lot of the debt. She's going to talk to some bk attorneys.

[electra]

So sorry to hear that.  I'm in a similar situation.  Community property and no fault stinks.   One option I considered was moving to another more divorce-friendly state, establishing residency there (6 months), and then filing for divorce.  Ultimately didn't do it bc of my child and work considerations.   In my case, at least all the CC's were separate, we did not have joint cards but I was on the hook to the IRS and CA FTB for BIG money bc he was a contractor and didn't pay his taxes.    After 3.5 years I have finally dug myself out of that hole...mostly. I hope she doesn't earn more than him or she might be on the hook for alimony on top of everything.  Sorry to be a Debbie Downer.  Tell her to get a good attorney.