Ex-wife is Attempting to Discharge Joint Credit Card Debt – Can I Stop Her?
I declared bankrupcy 3 years ago, and I am just now starting to get my finances in order. However, I just found out that my ex-wife will be declaring bankruptcy, and she has around $18,000 in credit card debt that she will be discharging.
After paying my bills and child support, I end up with $200 extra a month. There is no way I can pay the $18,000 credit card bills, and I can't file bankrupcy for 3 – 4 more years. Can I stop the transfer of her $18,000 debt to my name (the credit cards have both our names from our marriage, and she assumed responsibility in the divorce papers).
–D
Jonathan Ginsberg responds: Your email raises several issues and the answer to your question is "it depends."
My first question would be to ask why the joint credit card debts were not listed in your petition. The bankruptcy law requires that you list every debt in your name and all of these credit card debts should have appeared on your credit reports.
Realize that the credit card companies are not subject to your divorce agreement so nothing in that agreement binds them. Since she assumed responsibility anyway, it does not make sense that you did not list them. I cannot believe that any capable attorney would have told you not to list these debts.
In any case, one tactic here would be to move to reopen your bankruptcy case to add these debts. Realize, however, that reopening a case is discretionary by the judge. Also, there is case law which says that an unlisted debt can be discharged even if the creditor had notice when the case did not generate any assets to be sold and distributed to creditors. My thought is that you should try to reopen and hope for the best.
Secondly, the newest amendments to the Bankruptcy Code provide less protection for debtors attempting to discharge debts arising from a divorce. You may have an argument to object to her discharge or the discharge of these debts.
In a private email, I will send you the name of a friend and colleague who handles divorce related issues in bankruptcy cases.
Finally, you may want to speak with your divorce lawyer and/or my bankruptcy/divorce colleague to see if you have any argument for contempt of the Divorce Decree in Superior Court. Your ex-spouse is violating both the letter and the spirit of the divorce agreement and the trend in the law is moving away from allowing debtors to use bankruptcy to rid themselves of divorce related debt.
–Jonathan
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Comments on Ex-wife is Attempting to Discharge Joint Credit Card Debt – Can I Stop Her?
Couldn't this guy get in touch with the credit card companies and give them copies of the Decree stating that is he is no longer responsible for those accounts? He should have done this right after he received a conformed copy, but they should still be able to remove him. I don't see why credit card companies would not be bound by a US court of law's decree, even if it is family law.
Sarah: The credit card companies are not bound because they are not parties to the divorce decree. The divorce court would not have jurisdiction over the credit card companies. Think about it this way – what if an old roommate owed you money, but never paid you. She got married and then moved to Alaska. She gets divorced in Alaska and the Alaska Court orders her husband to pay all of her outstanding debt, including the debt to you. Two years later, she wins the lottery and moves back to your city. Would it be fair to tell you that you no longer have the right to collect the debt from your old roommate?
Generally, in a divorce situation, both parties should cancel all credit cards and address the bankruptcy issue in the divorce decree. Needless to say, that does not always happen. –Jonathan
My ex-wife were divorced in 2004. She borrowed a lot money against my credit card without my consent or knowledge in 2006. What can I do?
I am assuming that you are speaking about new credit card debt that she charged in 2006, two years after your divorce was finalized.
If she was an authorized user of your cards, I would think that the credit card company would be off the hook. You might have to sue her (perhaps in small claims court) and argue that she should have to pay you back.
If you did not cancel her authorization to use the credit cards she may argue that there was an implied understanding that she had permission to use your card.
As a rule of thumb, when you are going through a divorce, you should separate your finances from your soon to be ex-spouse and close any joint account. I can't imagine any reason why anyone would keep an ex-spouse as an authorized user or co-debtor on a credit card two years after a divorce.
Hello, I have a quick question. My uncle has ran up about $10,000 in credit card bills and never intended to pay them. The creditors are starting to call relatives for money. I know thats a joke. But he thinks that credit card companys can't do anything to him. I sure the state of SC doesn't have a law protecting him, right?
Once credit cards are discharged/closed are you still responsible for payment?
i filed chapter 13, and later found my ex wife filed 2 years ago (ch7) a couple of the credit companies were joint account that she was supposed to have taken care of. i am filing agains the same ones, plus some of my own during the time peroid, shouldnt that have been taken care of by her ch7?
Hello,
My husband just received a collection notice from his ex-wife's credit card company for 5,000. He has been divorced since 2002 and the card was closed upon thier divorce. He unfortunately was the co-signer and she agreed to the debt. The credit card company has contacted him and he told them of the stuation and that she is the primary account holder. She is not taking phone calls at her residence apparently. I know he is responsible, but can he dispute that the card was closed at their divorce and, since she is the primary account holder, all legal action be directed towards her? Also, she owns a house- will a lean be put on her house first before ours? We were still able to retain a mortgage with this problem on his credit- how serious is this for him/us?
As far as the credit card company is concerned, your husband has the same responsibility for this debt as his ex-wife. The credit card company is not bound by any agreement between your ex and the ex-wife. The credit card company can go after either or both of the co-debtors. If they go after your husband, he can file a third part complaint against the ex-wife to bring her in but obviously you want to avoid litigation. I would suggest that you contact an attorney to send her a strongly worded demand that she take care of this situation. Perhaps you could pursue a contempt action that arises from the original settlement. The big problem is money – if you spend $5,000 to try to force her to pay $5,000 you may win the battle but lose the war. I would start by contacting the divorce lawyer who represented your husband in the original case.
I was divorced in 2005. My ex-husband was ordered to pay the mortgage but did not, costing me thousands. I took him to court for contempt in 2006 but he filed ch. 7. I was essentially told by my attorney that there wasn't anything I could do. I've done a lot of research on the new BK laws and believe that the debt should not have been discharged.
Is there anything I can do about this now? Can I continue with my contempt case and if so, can I collect money in a contempt case?
My ex and I divorced 4 years ago in FL. He had a credit card in his name only. Can his creditor come after me since the debt incurred during our marriage, although I was never on his account or even had a card issued in my name? The creditor has called my house (different state) looking for my ex.
Thanks
Vivian, if the card was not in your name, you are not responsible for it. Period. I would suggest that you check your credit report to verify that this debt is not showing up there.
Hi! I am thinking about filing chapter 13. I am not the primary card holder on one of my credit cards, but it is my debt. Can I put the debt on my bankruptcy without the credit card company coming after my former partner (the primary card holder)???
Thanks!
My husband and I have been married since 1990. His ex-wife has credit cards from 1979 with debt and he is the primary card holder. They are harassing him for the debt. Also, she has cards in his name from 1990 when we were married with a lot of debt. My husband pays all of our bills on time, is retired and receives a pension to live on. I am the one with the excellent credit because of him. He has the worst because of his ex. It seems to never end. She did file bankruptcy at one time, but not for these debts. Is there anything we can do, without paying all of her debt.
Debbie, I think you need to speak with a lawyer about any rights your husband has against his ex-wife, and about steps you may be able to take to make his "judgment proof" so that the collectors will decide that there is no hope of recovery. You might also talk to counsel about making a partial payment offer to settle the debt and get this part of his life over.
My husband unfortunately agreed to pay all of the debts in the marriage to his ex-wife just to get the divorce over with. At the time of the divorce she was a stay-home mom. He tried to keep up with the minimum payments, but fell behind because he was ordered to pay her attorneys fees, his attorneys fees, and a property settlement, in addition to paying 40% of his income for child support for their 4 children, which left him with negative income every month. Now his ex-wife has a full-time job, receives over $3,000 per month in child support, and pays no rent as she lives with her boyfriend. Some of the credit cards are now filing lawsuits against her (most of the cards are in her name) and she is telling them that he is responsible to pay them. He just finished paying his lawyers, but he is still paying her lawyers and still paying the property settlement, together with the $3,000 for child support. Is it possible for him to discharge those debts in a chapter 7 bankruptcy?
I have a somewhat similar situation. I am a cosigner on a student loan for my ex. In the divorce decree it states they are responsible for that debt. I know they allow a signer to remove their name after so much is paid or by mutual consent of all parties. Is is possible to have them remove my name because of the decree without having to pay the 24 months on the loan. Thanks for you time!