Somewhat complex set of questions

[GumNotGod88]

[jgordo52]

it is my understanding that if the card is in your name then you are responsible for the debt, not her even with your agreement. I'm sure that someone will chime in shortly for more clarification.

[GumNotGod88]

Thanks for the reply jgordo.

That the debt is and will remain mine is the general vibe I'm getting from everyone I talk to. I wonder why her lawyers keep saying that the debt will be discharged with her other debts, what reason do they have to lie? How could they possibly benefit from misleading their client?

[Never_Again]

1. Yes, they are correct... she can include her obligation to this debt in the bankruptcy. Responsibility for the debt then falls exclusively to you as a joint account holder. I believe that you can address this through the divorce proceedings, and still hold her responsible for her portion of the debt. The creditors won't hold her responsible, but you can.

2. No, you taking over minimum payments is what the creditor will expect WHEN she includes it in her bankruptcy since you are jointly liable for this account.

3. If she is "contractually liable" for this debt, you can not remove her as an authorized user. You can close the account by telling the creditor that you will not be responsible for additional charges, and ask them (if they will) to issue you an individual account, but if she has accepted liability for this account, she is on it until paid, settled, or discharged.

4. I have never been divorced, so I am not sure. You definitely want to be in communication with your lawyer on this one. If this is the only joint account you hold, then it should not be too much of an issue.

Her lawyers do not seem to be lying to her, but are representing their clients best interests. You need someone to represent yours as well.

[keepmine]

Thanks for the reply jgordo.

That the debt is and will remain mine is the general vibe I'm getting from everyone I talk to. I wonder why her lawyers keep saying that the debt will be discharged with her other debts, what reason do they have to lie? How could they possibly benefit from misleading their client?

Nobody is lying to her. They're being prudent and listing every creditor who could possibly assert a claim.

[GumNotGod88]

Thank you all so much for the responses. I have been trying to avoid getting a lawyer involved because the debt isn't that much $, and I figured either her lawyers are correct and the debt will be discharged or they are blowing smoke and I'll have to find a way to pay it. Either way, why pay a lawyer to tell me that my hands are tied and I just need to wait and see. It sounds like, though, from what you all are saying that there may be some other ramifications that I need to be aware of, and that I really should just suck it up and pay for a consultation. So a big thanks, I really appreciate the heads up.

[2Bshinyandnew]

The way I understand it as someone in the middle of a divorce situation whose spouse has filed for BK.


1- Are her lawyers correct in saying that is possible to have this debt included in her bankruptcy filing?

Yes. It is possible for her to have her responsibility to this debt, or any possible responsibility to this debt discharged in a Bankruptcy. However, it will not wipe out THE debt as a whole, only her responsibility to pay any portion of the debt. . If the card is in your name, you will still be responsible. Since she was only ever an authorized user, her responsibility may only be the charges she actually incurred, which in your case happen to be all the charges on this CC, but as the account holder, you are responsible for ALL the charges, even if you did not make them.



2- If so, does my taking over of the monthly minimum payments hurt her case for including this debt in her bankruptcy?

I don't see how it would hurt her, especially if she was only an authorized user. Not paying this card debt can really only hurt you since you are the account holder.I don't believe so. My ex was an authorized user on a citibank card I had during our marriage. When we separated I removed him as an authorized user. In his bankruptcy petition he included that citibank account, even though he had long since been removed as an authorized user on that account. It was included sort of as a "just in case" to cover any and all liabilities he may have.

4- Are there any other issues that I need to be aware of when one part of a couple that is in the process of getting divorced files for bankruptcy?

California is a community property state, so I would look at the stickies on the forum related to community property states and Bankruptcy.

If the debt is small, I would do a freebie consult wit a BK attorney, but honestly, according to the facts you posted I think you are ultimately responsible for this debt. The only one who will be harmed financially if you don't pay it is you. If your ex agreed to pay this debt as part of your divorce/property and liability distribution, you may be able to go after her to pay you in civil court, but again, that is state and situation specific.