@cheiney74 wrote:I am in need to repair my credit quickly. My divorce is final and even though debt was in my ame also my Husband was court ordered to pay the bills during the divorce. Well he didnt do that and now I have about 20k unpaid credit card debt and I am not sure where to start, but I only have a year to refinance the house in my name. Can someone please guide me?
UGH one of the hardest realities of divorce. Sadly too many spouses get caught in this trap and have their credit destroyed. Legally the family court judge cannot force the creditors to accept their terms and not penalize the person who is a joint account holder he/she deemed not responsible for the debt when as in your case the husband doesn't pay as ordered.
First reach out to the creditors. Explain the situation and ask how you can work together to settle the debt. You might be surprised at how willing they are to work with you when you confront the situation head on. Next: is there equity in the home? A cash out refinance might be possible to also pay off the debt(s) in the process. The downside is that the rate the home is in now may be a third or half what the interest rates are now. Check to see if the loan is assumable where you can simply move it to your name only at the rate it is at in your current mortgage. Last: get your divorce attorney on the phone and look into hauling the deadbeat back to court and getting the family court to do something about him. Too many of the spouses that do this literally and figuratively bank on their ex not doing a darn thing and they get away with it.
Welcome @cheiney74 . When was the divorce? Talk to your lawyer. Depending on the state.If your ex-husband refuses to comply with the divorce order, then he is at risk of being held in contempt of court. Or a family law attorney, that can help you file an enforcement order that will hold your ex-spouse responsible for paying what he owes. Do all you can to keep the payments up if possible.
@Cowboys4Life wrote:
@cheiney74 wrote:I am in need to repair my credit quickly. My divorce is final and even though debt was in my ame also my Husband was court ordered to pay the bills during the divorce. Well he didnt do that and now I have about 20k unpaid credit card debt and I am not sure where to start, but I only have a year to refinance the house in my name. Can someone please guide me?
I've been in a similar situation, and unfortunately there are no easy solutions. If you have an attorney, you should definitely discuss it with them.
The issue with using the courts, is that you're going to have to file (asking the court to hold him in contempt). He'll have 2 weeks to answer, then the next step is that the court would schedule a hearing. Not sure which state/county you're in, but the courts have been clogged for a while due to the slowdown during COVID, and where I'm at it would likely be 2-3 months before you had a hearing. And the problem then is that all the court can do is tell him to pay the debts. Unless you have access to his financials and could show the court that he has the funds, then at best they could garnish his wages (or seize a bank account), but again, that's something that would require an attorney.
The only problem is that during all of this, your debt is still in your name, and the lates will still be piliing up on your credit record. I think the faster approach is to refinance the house in your name, take out equity to cover the $20K, pay it all off, and then go back into court and try and get it from your ex. You could do a refinance pretty quickly (assuming he signs the paperwork) and then you can hammer him in court.
The only problem is that he could (out of spite) refuse to sign the refinance paperwork and continue to lock you in to an untentable situation. You'd then have to go to court still just to do that. Not sure if you had an attorney or not, but your divorce order should have been structured to say that he was required to pay the $20K in so many days (typically 30-60) and if not, then that amount would be converted to a judgment against him with you as the payee. Then, it would have been a simple matter of going for wage garnishments/leins/etc, which typically only takes about a month to set up.
Just my .02, but I've been through the wringer on mine, and know that when it comes to joint finances and other considerations, you (and your attorney) have to think of all the various ways someone could "screw you over" and then structure things to preclude that from occurring. That usually takes a few more $$$, but it pays off much better in the end.
@cheiney74 wrote:I am in need to repair my credit quickly. My divorce is final and even though debt was in my ame also my Husband was court ordered to pay the bills during the divorce. Well he didnt do that and now I have about 20k unpaid credit card debt and I am not sure where to start, but I only have a year to refinance the house in my name. Can someone please guide me?
@cheiney74 welcome to the forum and sorry that you are going through this. Like others have stated, sucky situation and I too have also gone throught this and a lot more. I agree, you can try to reach out to the creditors and letting your lawyer know. One more reason I question my choices daily, lol. Let us know how it goes, good luck!
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