Question about credit card debt???
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Question about credit card debt???
| Sun, 01-30-2005 - 8:27am |
Unfortunately, my STBX and I have a good amount of credit card debt.
| Sun, 01-30-2005 - 8:27am |
Unfortunately, my STBX and I have a good amount of credit card debt.
HI,
I am a board alumni, but still pop in once in a while.
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I agree you should work with your attorney to make sure the division of debt is equitable. If he takes on any credit cards that have your name on it, set up a login/password on the credit cards website so you can check each and every month that the payment was made. That way if he misses one, you can still get it paid before it hits 30 days late (or at a minimum, call the cc company and ensure the payment was made). This will protect your credit, because if he doesn't pay, you are legally responsible for payment too. Also, all joint accounts need to be closed to further charges, but it sounds like that part is taken care of.
I don't think it sounds fair to take on more of the debt, especially if there isn't much equity in the house. Give him 1/2 the debt, but make sure he pays it each and every month, and set up an emergency savings account in case you have to make an unexpected payments. Anything that he is ordered to pay, but that you end up paying, can be resolved by going back to court and him being ordered to reimburse you. But do talk all this through with an attorney.
Karen ~ wildlucky4me ~
Aaaargh! Please tell me there is some way around this? For eg: we have 1 cc that HE is primary owner of ... i am on it as a 2nd ary person. That one is about 6K. Then the one I have in my name, w/ him as 2ndary, is at about 1K. His car loan is his name ALONE, & mine is MY name alone. & there is some other debt as well, althgough not to bad. So ... once all the debt is split & the equity is figured out & I have to pay him out for the house ... he may be left w/ his CC as part of the debt he is responsible for - but i HIGHLY doubt he will pay it. He has never been even close to responsible like this. He hasnt ever paid bills during our marriage, serioulsy, he is confused writing a check! I know he will pay his car payment, otehrwise it would be repossesed - or would *I*, even though i am not on the loan AT ALL, end up responsible or my credit would be ruined? Can i be taken OFF his cc account, in case he defaults? Or better yet, can all the debt be paid off BEFORE he gets his money from me? His share & my share, if the need be?
Thanks.
There are usually two ways you can both be on a credit card account. Either it's a joint account and you are both legally responsible until it is paid in full and closed. Or it's one persons account and the other person is an authorized user. An authorized user is allowed to charge on the card but is not legally responsible for repayment. Authorized users can be removed (I did this with my cards when I separated from my ex, he did not have his own card, was just an authorized user on mine). If it's a joint account, the only way to get your name off the debt is have your STBX open a new card in his name only and transfer the balance. Make sure this happens and that you get a final statement showing a zero balance and something in writing from the credit card company saying it is closed.
You cannot be legally responsible for debt that does not have your name on it, unless in the divorce order you have agreed to pay for it. The company who has the debt cannot enforce anything, but the divorce court can. So if he is ordered to pay one of your credit cards, that has your name on it alone, and then he falls behind, the only way you can enforce the order is to go back to divorce court. In the meantime, you would need to keep paying on the debt so your credit is not damaged and then the divorce court would make him reimburse you. The only credit history that can appear on your report are credit cards or loans with your name on them (in some cases history where the person is an authorized user will be reported, but that should stop once the authorized users name is removed).
I hope this helps?
I also agree with the CL, if you have equity in the home but after normal selling expenses there would be no profit, then there is no real equity and you would not have to buy him out of the house.