Help (is my husband liable?)

[RedHeadGirlLA]

I am in desperate need of help here.  Today I noticed that there was a legal judgement placed on my checking account for an old debt.  I am currently unemployed and there was no money in the account.  They were only able to get $18.20.  I have done a little digging and need some guidance and don't know where to turn. 

1. I believe this to be an very old credit card debt from before I was married. (BofA Charged off in 11/9/2004)  Is my husband liable for this debt?  (We live in the state of California.)

2. How do I find out if this debt is at legal to collect on anymore?

3.  How do I find someone to help me legally?  I have little to no money right now?
4. Are they going to keep going back into my account to get more money?

I am really scared and don't know what to do here.  Please help.

Thanks

[GregB]

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@RedHeadGirlLA wrote:

I am in desperate need of help here.  Today I noticed that there was a legal judgement placed on my checking account for an old debt.  I am currently unemployed and there was no money in the account.  They were only able to get $18.20.  I have done a little digging and need some guidance and don't know where to turn. 

1. I believe this to be an very old credit card debt from before I was married. (BofA Charged off in 11/9/2004)  Is my husband liable for this debt?  (We live in the state of California.)

2. How do I find out if this debt is at legal to collect on anymore?

3.  How do I find someone to help me legally?  I have little to no money right now?
4. Are they going to keep going back into my account to get more money?

---

1. Yes

2. In the unlikely event that the debt was beyond SOL when they sued you, you would have needed to raise that issue as a defense at that time. It seems they have a judgement so SOL doesn't apply.

3. I can't see what anyone could do for you "legally" unless it was beyond SOL when they sued you or if you are going BK.

4. That mechanism is probably already in place with your bank. If they don't get the money soon, they will look for other accounts. They will probably then subpoena you for a debtors exam where you need to disclose assets, income, etc.

I'm sorry to be the bearer of bad news. Unfortunately the best time to have dealt with this was in 2004 and it has now become worse.

[Cleanmachine]

With all due respect, I disagree with GregB regarding the Husband's liability on this debt.

Even though they live in a Community Property State and this debt was prior to the marriage

the husband is not liable.

What Stays Separate in a Community Property State

Broadly, separate property in a community property state includes:

1. All property owned by a spouse prior to marriage.

2. Property obtained by a spouse after a legal separation.

3. Any property received as a gift or inheritance during the marriage from a third party (as long as this property remains separate from community property, such as joint banking accounts).

Also, pre-marriage debts remain separate property. For example, educational loans acquired before a marriage wouldn't become community property.

But separate property can transform into community property. For example, if a spouse who owns property before the marriage adds the new spouse's name to the deed, that home becomes community property.

Your husband may need to contact an attorney should they attempt to collect from him.

I trust you have separate Bank Accounts.

Best of luck

[fused]

Moving this thread to the General Credit Issues forum.

[Booner72]

Run, do not walk, to your bank and make sure you close all the accounts before anymore deposits are deposited.

[GregB]

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@Cleanmachine wrote:

With all due respect, I disagree with GregB regarding the Husband's liability on this debt.

Even though they live in a Community Property State and this debt was prior to the marriage

the husband is not liable.

What Stays Separate in a Community Property State

Broadly, separate property in a community property state includes:

1. All property owned by a spouse prior to marriage.

2. Property obtained by a spouse after a legal separation.

3. Any property received as a gift or inheritance during the marriage from a third party (as long as this property remains separate from community property, such as joint banking accounts).

Also, pre-marriage debts remain separate property. For example, educational loans acquired before a marriage wouldn't become community property.

But separate property can transform into community property. For example, if a spouse who owns property before the marriage adds the new spouse's name to the deed, that home becomes community property.

Your husband may need to contact an attorney should they attempt to collect from him.

I trust you have separate Bank Accounts.

Best of luck

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Actually we mostly agree. I was simplifying things a bit. I would imagine that they will attach the husbands bank account and then everyone could argue about it in court after the fact. The result will be that the creditor will get their money because it is unlikely to be worth the argument. With the judgement they can attach community property and property is assumed to be community unless proven to be separate.

It isn't relevant to this but thought I would add that the statement about separate property changing into community property needs some more explanation. When one party owns a house before marriage, adding the spouse to the title really only changes the rate that the community component increases. Unless the house is paid in full before marriage and all maintenance, insurance, taxes, etc. are paid separately then you don't have a chance of keeping it separate. Paying it separately means that the source of that money also has to be separate income. Does the couple live in the house? Does it rent above or below market rate? Does the community spend time dealing with rental? I've been involved with a single house that had numerous Moore/Marsden calculations and the total accounting and legal bills would clearly exceed the house value.

[Anonymous]

If your husband's name wasn't on the account what so ever, then he is not liable and they can not collect from him!!! If shows up on his credit report, dispute it then it will be removed!!!

[RedHeadGirlLA]

I'm not putting anymore money in the account.  I spoke with the creditor and there looks like there really isn't much I can do. (I can't fight this.)  I said that I would be happy to make payments and that I don't have any assets, which is true.  I am currently unemployed and looking for work.  I told him that I would send a good faith payment every month.  He said okay. 

I will do my best to make this right. 

I have another question.  I have a car that isn't worth anything but it is my only means of transportation.  (It's paid in full.) Can they come and take it?  I am really scared here. 

[GregB]

You should be pretty safe there.

It is unlikely, but they could subpoena you to a debtor's examination where you would have to appear in court and answer questions about your assets and income. The judge would then make an order about what they could do. As long as you are paying them something, they don't really have much to gain by going after other assets. Typically, if you are paying them something and they hauled you in to court, the judge would be happier with you than with them. Judges are busy and don't like it when people waste the courts time.

I think sending them something is key here. If you owe them $1000, sending them $10 per week might make them happier than $50 per month.