dispute help. timeshare nightmare

[Anonymous]

So my wife during her divorce agreed to hand over timeshare to her husband(court documents verify this). She was required to file a quit claim deed which she did. Upon inspecting her file recently because we're super focused on buying a house in the near future, I noticed there was a collection for the timeshare for about $1k. Naturally I filed a dispute online with TU but they would not let me complete it because I was uploading court documents (weird). So I called and managed to submit the dispute over the phone and the rep noted the quit claim deed. Today I recieved a letter showing that a dispute was filed but the account not removed and the balance owed had tripled. So, called the collection guys and they say the quit claim was filed incorrectly: it should have been from exhusband + wife to ex husband not from wife to ex husband which I find odd because wouldn't she just hand over her half? Anyway, he tried to collect. I ended the call cordially. so I'm stuck here wondering what the next step is, because the TU Report shows that this should disappear in December 2015, but I did notice a dip in wife's credit score this week already? Any and all advice is more than welcome.

[Anonymous]

Unfortunately, many people do not understand the meaning of 'quit claim'. When you quit claim, it applies only to the property, not any debt that is against the property. That debt is still fully valid, and any default still goes against both borrowers regardless of divorce or quit claims.

This is why in a divorce, if there is any question at all about the other parties fiscal responsibility, any joint owned property should be sold off and debts cleared to prevent stuff like this from happening.

The tripling of the balance over a short period of time is highly suspect. It sounds like the CA feels they may have a 'fish on the line'....

Do you know the status of the SOL on the debt?

[RobertEG]

They have verified, which terminates the dispute.  Consideration of legal proofs of her responsibility for the debt are not part of an FCRA dispute resolution.

It appears that you have a factual issue of when the delinquency occured, which is determinative of whether it could be placed for collection, and of her legal responsibility for the debt at that point.  Agreements between the parties in a divorce decree are notmally not binding on the creditor continuing to asess responsibility of the parties.

I would consult with an attorney if you wish to contest her responsibility for the debt or of the credit reporting.

It appears that civil action would be required to contest their verification on the merits.

[Anonymous]

No, how would I go about finding that out?

[RobertEG]

By bringing a civil action, and requesting documentation as part of pre-trial discovery.

That does not imply that I recommend legal action, but that is how you would get any evidence that is material to your issue.

[Anonymous]

well, that sounds like a lot of work. I proba should've never disputed and just paid off the $1k. In light of all this, does waiting it out till 12/15 benefit us in anyway. I was planning on paying of the few CC accounts DW has at tax time. Wally TU is low 670s and at this point I'm out of ideas. That's the only baddie. We were really hoping to make a realistic run at a good mortgage rate in 2015.

[Anonymous]

I think how you approach this needs to take into consideration whether it is beyond your states SOL

If beyond SOL for contract debt, you have lots of room and leverage to dicker with them. I suspect it may be since they are trying to tack on as much interest that they feel they can get away with. They may be trying to better their bargaining position.

[Anonymous]

Alright then, thanks for all the input guys. I'm going to look into it.