Spouse's Credit Card Debt

[terry6969]

My question involves collection proceedings in the State of: NC

My husband and I now live in NC (used to live in IN just moved) and he has a massive amount of credit card debt that I was not aware of until recently.

He is unemployed now (laid off), and is about to default on this debt (over $100K).

I am employed, but can anyone come after me to make me pay this debt if he defaults on it? We do own a home and it's in both of our names (my income was used as the basis for the loan).

If he decides to simply not pay it (no income), what can they really do to him? Can they put him in jail?

My credit is great, but I simply can't make his payments and mine, and am scared that they will ruin my credit too.

Thanks for your help!

[Betty3]

You're not in a community property state but the doctrine of necessaries can make one spouse responsible for another spouse's debts even in non-community property states. However, my most recent info indicates NC courts have been applying this doctrine mostly to medical debts though in some states it can be applied to debts for food & other necessary items used by both spouses. (You can ask an attorney in your area if you might be responsible under this doctrine to be on the safe side.)

Bankruptcy *might* be a consideration for your husband. He would need to talk to a bk attorney.

If he doesn't pay the debt, they can sue him in court & get a judgment against him - they can then seize all non-exempt assets (allowed in your state) that are in his name or jt. assets (any assets that also have his name on them). They won't put him in jail - there are no longer debtor prisons.

[Betty3]

I might add re my above post - in regard to a judgment, they won't take your home even if it is in both names. However, there's a possibility they would put a lien on it in case it is sold they will get their money/part of their money out of the sale.

If the credit card/cards were not used for medical debts or joint necessary items, the doctrine of necessaries should not apply.

[terry6969]

So, he can apply for bankruptcy, and I would then not be impacted by it?

What about joint assets?

Thanks for the help, I've not slept much the past several weeks.

[Betty3]

He would need to talk to a bankruptcy attorney to see if he qualifies & for a chapter 7 (to wipe out all of this credit card debt) & ask him all of his questions. He can file bankruptcy himself (it doesn't have to be a jt. bk just because you're married) just on his debts. The bk attorney will ask about his income, expenses, debts, etc. They do consider when deciding whether he qualifies for a chapter 7 any income the spouse might regularly contribute toward his living expenses. Re jt. property (ie home) only his interest in the property will come into play. It seems from your post he would *probably* qualify for chapter 7.

A bankruptcy attorney can answer all of your questions.
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Re a judgment & seizing jt. assets, if you can prove to the court & creditor that part of the asset is yours, they cannot seize your interest in the asset.

Confusing, isn't it.