Most states use common law (also known as equitable distribution), which dictates that married couples don't automatically share personal property legally. In other words, you aren't responsible for your spouse's debt unless you took it out together as a joint account, or you cosigned on it.
In almost every case, you will not be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder after marriage.
Creditors: - Creditors typically cannot pursue you for your spouse's individual debts unless you co-signed or guaranteed those debts. Legal Advice: - It's always a good idea to consult with a legal professional who can provide advice based on your specific situation and local laws.
Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
You can protect yourself from your spouse's debt by signing a prenuptial agreement before you get married and avoid taking out joint credit. It's especially important to protect equity in your home during a divorce to ensure you get your fair share, since this is likely the largest asset you have.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
California is a Community Property State
As a result, it is possible for a creditor to garnish a spouse's bank account if their spouse owes a debt.
If you're not responsible for a debt, debt collectors may still contact you if you're a surviving spouse or oversee the estate, but it's illegal for debt collectors to suggest you're responsible for paying from your own money. It's also always illegal for them to harass you about paying the debt.
You are generally not responsible for your spouse's credit card debt unless you are a co-signer for the card or you're a joint cardholder on the account. However, state laws vary, and divorce or the death of your spouse could also impact your liability for this debt.
In community property states, a judgment creditor of your spouse can garnish your joint accounts. In some states, even if you have separate bank accounts, a creditor can also garnish your separate account to pay for your spouse's debt.
Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.
This is called “joint and several liability”. If you file separately, you are each only responsible and liable for your own reported income and debts. This means that if you file using married filing separately, you are not responsible for your spouse's debt, should they incur any.
No, a spouse cannot continue using the credit card of their deceased partner. Doing so is credit card fraud. The only time that's possible is if the partner is a joint cardholder, which is a fairly rare situation these days.
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Even though your card issuer "writes off" the account, you're still responsible for paying the debt. Whether you repay the amount or not, the missed payments and the charge-off will appear on your credit reports for seven years and likely cause severe credit score damage.
The bottom line. While debt collectors may not automatically sue over a $3,000 credit card debt, they have the right to pursue legal action if they believe it's a viable option.
Nine states are currently listed as “community property states” where you can become liable for a spouse's credit card debt during marriage, even if you're not a joint account holder. These states include: Arizona. California.
Debts either spouse incurred during marriage
Property acquired during marriage is liable for the debts of either spouse. So, a creditor whose claim arose during the marriage can collect your spouse's unpaid credit card debt from both halves of the community property, including your wages.
Am I responsible for my partner's debt? Generally speaking, a person is only responsible for their own debt. If your name isn't on the credit agreement and you didn't sign the contract, or act as a guarantor, then in most circumstances you can't be chased for payment.
A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.