[chrissabo]

My question involves collection proceedings in the State of: Ohio

I just got married 3 weeks ago and found out that my new wife has a boatload of unpaid credit card bills. She is unemployed, a college student and 8 months pregnant.

One bill is from Zales: The Diamond Store for $554 but apparently it has gone up to $856.63 because she stopped paying it in 2007. I guess this is on collections now because she's received collections letters from 3rd parties. Another is $2107 from Chase that also has gone to 3rd party collections agencies. Another is from Citibank for $6549.68 that resulted in her getting sued and a judgment being entered ordering her to pay the full amount. She also has 4 or 5 medical bills for a few $100 each that 3rd parties are trying to collect.

Question 1: She just moved to Illinois (where I've lived for the last 10 years) so all of her debt is in Ohio. Should I be paying attention to Statute of Limitations laws in Ohio or Illinois or both?

Question 2: I have the means to pay some of these, but I don't know if I should be answering these 3rd party collection letters. All of their settlement offers are from 5 months ago anyway. Should I respond to any of these letter and how should I do it? Should I be sending some kind of letters asking for debt validation? What's the first step in answering these 3rd parties and should I bother if the letters from them are 5-6 months old, or maybe I should wait until they send more?

Question 3: She was an authorized user on one of her dad's cards that went unpaid and has been closed and presumably sent to collections. Her dad died at age 51 in the spring. Does my wife have any responsibility to pay as an authorized user?

Question 4: My wife said people tell her she should declare bankruptcy. How does that affect me as her new spouse? I have a flawless credit history and about $6k in the bank.

Any help that anybody can offer would be a huge relief. You know those humorous commercials for freecreditreport.com where the guy sings about getting married to someone in steep debt? I feel like that guy.

Sorry for all the questions. Baby is on the way and my wife isn't working so it's a stressful time.

[mmmagique]

I feel for ya, dude. I am in the same situation, except I am the bad girl in debt, and we are not married yet, (and won't be until I file for bk).

I can't answer all of these questions completely, but for the rest of the answers the credit boards (creditboards dot com) has a lot of info.

1. I believe her moving essentially stopped the statute of limitations. I'm not sure how long that lasts, (perhaps forever?) but I know it is not good.

2. Question two has a LOT of questions in it. My answer basically, is never talk to collections people. You only have 30 days from the receipt of the first collection attempt to ask for validation. My advice with this is to first sit down with a financial counselor, (not one of the "credit counseling" for profit places, but an actual financial counselor who can advise you what would be best for you.) When you know what you can do, you can either just go ahead and do it, or attempt to negotiate.

3. Authorized user means just that. She is not responsible for this.

4. This is a question for the financial counselor. He/she can advise what will be best for the two of you.

5. Please don't tease your wife with that commercial...it's very humiliating and depressing to feel as if your mistakes has messed up someone else's life...

Good luck!

[chrissabo]

My advice with this is to first sit down with a financial counselor, (not one of the "credit counseling" for profit places, but an actual financial counselor who can advise you what would be best for you.) When you know what you can do, you can either just go ahead and do it, or attempt to negotiate.

Is there a list somewhere of reputable ones? It seems like a lot of people are claiming to be "financial counselors" even using the words "non-profit" and they're really debt settlement firms in disguise.

1. I believe her moving essentially stopped the statute of limitations. I'm not sure how long that lasts, (perhaps forever?) but I know it is not good.

Anybody know the answer to this one?

5. Please don't tease your wife with that commercial...it's very humiliating and depressing to feel as if your mistakes has messed up someone else's life...

I won't, but it's tough when you always pay your bills on time and have a stellar credit score and you marry somebody who just ignores the bills entirely. I just wonder what will happen to us now with our kid on the way.

[gigirle]

Heres my advice. She's looking at bankruptcy considering the debt that you are aware of (get a copy of credit report to be sure from all 3 agencies). IF she is on ANY of YOUR accounts...get her off. If you have joint accounts CLOSE them. If any of these agencies get a judgement and she is on your checking account, they can get YOUR money for her debt.
She can file bankruptcy SEPERATE from you. IF you go this route, I don't know your situation with your house, but if you put her on the deed, you need to go with her when she consults an attorney and if you didn't yet, wait until the bankruptcy is discharged (if you go that way). Her bankuptcy will only affect you (unless of course you've added her to your accounts) in that you will be the one putting your name on things for a very long time as it will take a while for her to build her credit back up. Bankruptcy stays on her report for 10 yrs.
I could be wrong but the SOL starts from the date of her last use, which would be Ohio.

[chrissabo]

Heres my advice. She's looking at bankruptcy considering the debt that you are aware of (get a copy of credit report to be sure from all 3 agencies). IF she is on ANY of YOUR accounts...get her off. If you have joint accounts CLOSE them. If any of these agencies get a judgement and she is on your checking account, they can get YOUR money for her debt.

Fortunately we just rent an apartment. Since she is unemployed and has no income, if she goes for Ch. 7, do they look at my income at all for the means test? Also, will they be looking at Ohio's (where she's from and where the debts are) or Illinois's median income for 1 earner?

Does anybody know how great all of you are? It's amazing to me. I guess the spirit of compassion and goodwill is alive and well.

[LawResearcherMissy]

Since she is unemployed and has no income, if she goes for Ch. 7, do they look at my income at all for the means test?

It's my understanding that they do not.

[gigirle]

Since she is unemployed and has no income, if she goes for Ch. 7, do they look at my income at all for the means test?

No they will not look at your income. This is of course my experience and with Ohio(but it's federal court so it should only vary a bit). You should really consult a bankruptcy attorney (most consults are free). She would also need to make sure she meets residency requirements.

Also, will they be looking at Ohio's (where she's from and where the debts are) or Illinois's median income for 1 earner?

Who is they? Bankruptcy court? The debt follows you where ever she moves to. She is solo on the bankruptcy thing. I realize that she's 8 months pregnant, but this is really her mess and she is the one who should be doing the leg work to get it resolved. Get that consult right away, it takes awhile to get the forms filled out and filed.

[chrissabo]

No they will not look at your income. This is of course my experience and with Ohio(but it's federal court so it should only vary a bit). You should really consult a bankruptcy attorney (most consults are free). She would also need to make sure she meets residency requirements.

Who is they? Bankruptcy court? The debt follows you where ever she moves to. She is solo on the bankruptcy thing. I realize that she's 8 months pregnant, but this is really her mess and she is the one who should be doing the leg work to get it resolved. Get that consult right away, it takes awhile to get the forms filled out and filed.

She's a great woman but something the advice she gets makes me wonder if she has good advisors. She said that she asked an attorney last year and he said when she decides to file, she should go out and max out all of her remaining credit cards. Now she wants me to drop her from my medical insurance so she can run up a hospital debt for the baby's delivery and have it erased when she files Ch.7.

Something tells me this is illegal, but maybe it's just immoral. Anybody know?

[LawResearcherMissy]

she should go out and max out all of her remaining credit cards.

WHAT???

No. Gods no. DO NOT let her do this.

So illegal, it would make your hair fall out. She needs a different attorney, and that right quickly.

[gigirle]

She's a great woman but something the advice she gets makes me wonder if she has good advisors. She said that she asked an attorney last year and he said when she decides to file, she should go out and max out all of her remaining credit cards. Now she wants me to drop her from my medical insurance so she can run up a hospital debt for the baby's delivery and have it erased when she files Ch.7.

Something tells me this is illegal, but maybe it's just immoral. Anybody know?

Okay, it's not surprising that she was told this. I swear that its part of the initial consult to shady attorney's or it's advise that is passed out somewhere bc everyone does this. Its illgeal and immoral both.
What can happen if she does this is that when she goes to court and swears under oath and they start asking her questions, if there is a SMELL of illegeal activity, the court will not dismiss that and not allow the bill in the discharge which means she pays the bad debt. The other problem with it is that the creditor has the right to argue why the debt should be paid. It could lead to arbutration where she ends up settling and paying a portion of the debt and the lawyer will cost her more.

As far as dropping her from the insurance...WAY STUPID IDEA. You married her now and you are 50% responsible for a debt that you helped incur. Bills resulting from the pregnancy will likely NOT be allowed in the discharge. If you drop her, you could also end up with problems trying to get her back on.

The bankruptcy courts are way behind in Ohio...between the bankruptcy court and criminal court its where most of the action is due to the failing economy here.