Concerned Husband

[creditguy14]

What is the name of your state? MA

In 1995, my wife was approved for a $14M personal loan, secured by her automobile. She was not the most credit savvy person at the time and did not have the financial means to repay the loan, hence the loan was defaulted. We met in 1998 and have been married since 2001. Yesterday, in the mail we received a summons to court stating that a judgement was passed against her and she owes that sum of money and needs to appear in court to resolve the payment structure.

Currently my wife is a housewife and mother, she has not worked for over a year and does not have any real assets. Her automobile was totaled in an accident in 2001.

My question is, can the court force me to make payments when the debt was acquired prior to me even meeting her and only her name is on the note. Secord part of the question, with her not having any savings, tangible assets or income, what will the judge do?

Thank you very much

 

[Ladynred]

YOU are NOT responsible for your wifes' pre-marital debts - or her post-marital debts for that matter, MA is NOT a community property state.

With no income and no non-exempt assets, there is little a judgment creditor can do to her. If your home is owned jointly, they could place a lien against it. If you have a JOINT bank account, then they can levy that account and drain it dry. So, if you DO have a joint bank account, get her name off of it NOW before its too late. You can set her up with rights to write checks w/o having her name on the account itself.

 

[creditguy14]

Thank you, Lady, we maintain separate bank accounts, both cars are paid for and under my name and we rent. Hence, she does not have any tangible assets. What will the attorney for the CA/lawfirm argue and what will the judge likely decide, please?

Thank you

 

[Ladynred]

If they already have a judgment against her, the judge has already made his/her decision. If your wife has only just been served with a summons and Complaint, then she needs to follow the instructions in the Summons.

If a judgment already exists, the judgment creditor will either send your wife interrogatories or haul her into court for a debtor's exam to discover her assets. If she has none, as you say, there's really nothing they can do except bug her periodically to see if she's acquired any assailable assets they can go after. A judgment will, of course, hit her credit for 7-10 years.

Did you say its $14 MILLION or was that a typo ($14M) ???

 

[isitmei]

check signing priveledge?

Hi Lady,
Can you expound about obtaining an account as a signer but not use my ss#
or have name on checks? Thanks.

 

[Ladynred]

I'm not sure what they actually call it, it may be a power of attorney sort of thing. The best thing to do is call your bank and tell them what you want to be able to do without having the account in both names.