Settling My Spouse's Credit Card Debt
My question involves collection proceedings in the State of: California
I found out my spouse has $30K in credit card debt when we applied for a new car loan. Our accounts are completely separate with exception to the recent approved joint car loan thanks to my credit. My spouse has never missed a payment, but only the minimum amount has been paid.
I can pay off the debt, but that is quite a penny. What is the best option in my situation?
1. Pay off the debt ASAP. However, I would like to avoid paying this much money with as least impact as possible.
2. Have my spouse contact the creditors to settle for a lump sum payment to reduce the overall pay out. Impact would be my spouse's credit would be further impacted, but I think risk is low after I pay off our car loan. Would my credit be impacted if my spouse negotiated a lump sum settlement and what are the impacts to us individually and jointly?
Would like pros and cons of each option considering we now have a joint car loan. I want to stop the debt accumulation from the interest rates. I do not want creditors to come after my assets and we do not own a home. Thanks.
Re: Paid in Full or Lump Sum Settlement
Divorce while you still have assets.
Re: Paid in Full or Lump Sum Settlement
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Disagreeable
Divorce while you still have assets.
well, it sounds like you cannot file for bankruptcy. best course is likely to pay it off all at once. just my opinion.
Re: Settling My Spouse's Credit Card Debt
Why do you believe that the credit card company would be interested in taking a penny less than is owed on the card, when your household is clearly capable of paying the debt and of keeping up with the monthly payments? It's free to ask, but don't be surprised when your spouse hears the word "no".
Re: Settling My Spouse's Credit Card Debt
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Mr. Knowitall
Why do you believe that the credit card company would be interested in taking a penny less than is owed on the card, when your household is clearly capable of paying the debt and of keeping up with the monthly payments? It's free to ask, but don't be surprised when your spouse hears the word "no".
What happens if she tells them she cannot pay it and is considering bankruptcy? That would give the creditors the chance to offer options such as a lump sum payment, no? Her debt accounts are not linked to my name and only the car loan do we share joint ownership.
Re: Settling My Spouse's Credit Card Debt
They will ask for her to document everything about her income and assets.
Re: Settling My Spouse's Credit Card Debt
Creditors hear that ALL the time. It does not phase them in the least. Any possibility of a settlement would be months and months from when you stopped paying. If at all. They have many other options available before they would, as a last-resort, negotiate a settlement.
Re: Settling My Spouse's Credit Card Debt
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df04527
Creditors hear that ALL the time. It does not phase them in the least. Any possibility of a settlement would be months and months from when you stopped paying. If at all. They have many other options available before they would, as a last-resort, negotiate a settlement.
Concur.
And really? They're more likely to go to court, obtain judgement, and garnish her wages to settle the judgement than they are to negotiate any kind of settlement.
Re: Settling My Spouse's Credit Card Debt
Forgot to add some more tidbits. My spouse has not held a job since 2007 and is a homemaker and currently has no income. My spouse was making $500 from babysitting but that was all cash and was what used to make payments. Also, the debts occurred before our marriage.
What happens if my spouse files for bankruptcy? I have good credit, one paid off car in my name, one joint financed car with me being main signer, debts occurred before marriage and my spouse does not plan to work for a few more years. $30K is a lot of money.
Re: Settling My Spouse's Credit Card Debt
If your wife files for bankruptcy individually, it shouldn't affect your credit.
That said, she should consult a California BK attorney for assistance in filing and information about how it might or might not affect you. Every case is different.
Re: Settling My Spouse's Credit Card Debt
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Smee;754987]Forgot to add some more tidbits. My spouse has not held a job since 2007 and is a homemaker and currently has no income. My spouse was making $500 from babysitting but that was all cash and was what used to make payments. Also, the debts occurred before our marriage.
so, did she pay taxes on that $500 (per week I presume)? Tax evasion comes to mind if she didn't but if not evasion, at least a large tax bill and lots of penalties.
and if you filed taxes "joint", it puts you right in the middle of it.
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$30K is a lot of money
Yes, it is so the question is; why do you think it right for your wife to obtain the $30k and now refuse to pay it?
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What happens if my spouse files for bankruptcy?
it doesn't remove any possible tax liability she, or you, may have.
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What happens if she tells them she cannot pay it and is considering bankruptcy?
that is followed immediately with:
does she have an attorney? If so, please provide their name and contact info.
Has she actually filed? If so, please provide her case number. If not, please pay the bill.
If either of the situations change (she obtains a lawyer or actually files), please let us know but until either of those happen, pay the bill.
Re: Settling My Spouse's Credit Card Debt
All known creditors must receive official notice of a bankruptcy filing, so it's not much of a bluff to pretend to have filed.