husband being sued... ADVICE PLEASE!!!

[shellbell]

Hi all. I haven't posted on here awhile. My credit problems are on the mend since I finished paying off my Chapter 13 in Sept 11. My question is for my husband. Back in 2007 he leased a car on his own. (btw my bankruptcy was in my name only). Because of my problems, they affected his income and he couldn't afford the car. (i know.. big mistake).

He received a letter in March of 2009 (after the car was repossess and sold) listing how much they received for his car and what he owed. Of course he didn't reply or pay anything.

Well, today, low and behold, the sheriff delivered a letter. He is being sued for the balance (after the sale) which is 13,000 + 6% interest.

He has 20 days to reply.

What should he do? He wants to ignore it. I don't. I am not going to have my checking account attached. (if that is possible)


HELP!!

[shellbell]

P.S.. I don't think the statute of limitations expires (Pennsylvania- 4 years) until November of 2012.

[justbroke]

If it's an actual lawsuit, then you don't ignore them. It's one thing to ignore a demand letter (dunning letter). It's totally different to ignore a lawsuit. I can't think of any recourse since he didn't pay and didn't discharge this in bankruptcy. With that amount of money, the creditor would probably get a motion for summary judgment granted if there is no response, and would then actually try to collect. It's too bad he didn't join the bankruptcy and it could have all been behind you. Since it's $13,000 with 6% interest and fees compounded, it can result in a rather large sum of money.

He can do what everyone else can do in a civil suit... Let it go to summary judgment, by ignoring it. Coming up with some defense and defending his position (fling an answer). Filing bankruptcy. Or, reaching out to the creditor and coming up with some terms -- although this may be really difficult. Judgments are very strong tools and they can be on your credit for 10 to 20 years; similarly the creditor can attempt to collect over that period.

I don't think Penn. allows wage garnishment, but all other property may be on the table, including bank accounts and personal property.

[shellbell]

Thanks Justbroke.

He doesn't own anything. Everything is in my name. We do have a joint checking account though. I was thinking of replying to the letter for a possible forgiveness of debt and let them claim a 1099.

I wonder if this is possible.??

[ValleYum]

I would ditch the joint checking account ASAP if I were in your position. Better to be safe than sorry (and have an empty checking account).

Good luck.

[justbroke]

Yes, if you're going to try to distance yourself, financially, then you may want to make sure any new checking account is solely in your name. When you say he doesn't own anything, do you mean, he owns no TV, books, video, or other "personal" property? Mind you, that I don't know the extent to which they deal with judgments in Penn., but I have read here recently that a Sheriff went to someone's home to see what they had INSIDE the home to sell in a Sheriff's sale. I can't say that's the extent this will go, but it is there.

Unfortunately, judgments can be nasty financial matters with serious consequences. It is not always appropriate to stick one's head in the sand and hope they go away. Unless you are actually uncollectable, I would not simply stick my head in the sand. Maybe you can consult (for free) with a few attorneys that deal with debt collection and judgments and see what their take is given your specific problem.

I think you're beyond "forgiveness"! The fact that they have filed a lawsuit means that you may have forgotten, but they certainly have not forgiven.

[shellbell]

ha ha.. yes.. he is beyond forgiveness. I know some finance companies just 1099 the balance and you have to pay the taxes. This has happened to me before with my ex husband.

Yes, my name is on everything.. house, car, etc.

[justbroke]

Yes, but the financial companies will 1099 rather than initiate a lawsuit. A lawsuit, to me, indicates that they are serious and they believe that there may be "something" that they can attach a judgment lien to, or get a Writ to execute a levy upon some property. Not that there may not be any, but I have never read a case where a creditor filed and received a judgment, only to issue a 1099-C thereafter.

[shellbell]

ughh.. i don't want this headache.

[ValleYum]

Could hubby file for BK?

[shellbell]

He could but he doesn't want too.

[AngelinaCat]

He could but he doesn't want to.

He needs to. Doing that will protect himself, as well as you. I don't remember which CH you filed, but if he can, he needs to file a CH7.

[helpmeout]

He could but he doesn't want too.

Then he needs to find a way to pay the debt.

[tobee43]

ahhh wanting to do something and having to are two seperate emotions.

jb points out something interesting...why would they sue, unless they feel there is something to attach a lien to. i would make certain about your assets that they are in your name and your name alone. i don't know if PA is a community property state?

yuck...my understanding is this after "marriage"

Marriage

" A wife is not typically responsible for her husband's debt incurred before marriage. However, debts incurred during marriage are another story. Legally, marriage is generally interpreted as a union of two people. This union is typically seen as a partnership, financially and in all other ways. Some defense may be provided if only one partner's name is on the debt; however, many states have community property laws that make all debts joint even if only one party applied for them."

[shellbell]

Nothing is in my husband's name except a used vehicle. I come to find out (from his credit report) that his account was charged off in June 2009 and this is a 3rd party company (Weltman, Weinberg and Reis) whom are suing him. NOT GMAC (the OC).

PA does not hold the spouse liable for any debts if they aren't in his/her name.