Author Topic: bankruptcy and credit report of spouse  (Read 1003 times)

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stevia

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bankruptcy and credit report of spouse
« on: January 17, 2017 02:38:00 AM »
My husband declared chapter 7 bankruptcy in a community property state and his debt was discharged. One credit card was in both of our names. His credit report shows the debt as $0, but mine still shows I owe thousands on it. I also have a judgement from this debt, as did he.  Can I dispute this debt with the credit agencies, saying it was discharged in bankruptcy? However, will 'discharged in bankruptcy' show up on my credit report then? Would that have a negative affect on my credit?

despritfreya

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Re: bankruptcy and credit report of spouse
« Reply #1 on: January 17, 2017 11:00:57 AM »
My husband declared chapter 7 bankruptcy in a community property state. . .(ALL COMMUNITY DEBT was in his name but for one which was in my name). His credit report shows the debt as $0, but mine still shows I owe thousands on it. I also have a judgement from this debt, as did he.  Can I dispute this debt with the credit agencies, saying it was discharged in bankruptcy?

You can try and maybe you will be successful however, your credit report has absolutely no impact on whether or not you are still on the hook:

1.  I assume you did not file bk.

2. If my assumption is correct, your husband received a "community discharge" thus protecting the "community" from collection efforts.

3. If my assumption is correct you DID NOT receive a discharge for your sole and separate obligation under any debt, including the judgment.  Read the judgment, is it just against the marital community or is it against each defendant individually and on behalf of the marital community?  If the latter then you are still on the hook if and when the community is ever severed or you acquire sole and separate property.

Des.

Bruno the JDB Killer

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Re: bankruptcy and credit report of spouse
« Reply #2 on: January 17, 2017 11:27:41 AM »
Did you sign the application for the card? If so, it just migrates to you under the terms of the contract since you did not file BK. The community property laws probably make it your debt anyway as long as it meets the standards.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

stevia

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Re: bankruptcy and credit report of spouse
« Reply #3 on: January 20, 2017 01:14:25 AM »
Yes, sorry I was not more clear, despritfreya, I did NOT file along with my husband, who is a soon to be ex. I'll have to get and read the judgment to see if it just against the marital community or against each defendant individually. I figure I am still liable for the debt technically after we divorce, I was just hoping there was something I could do in this short window of time while we are still married to help my credit. I am trying to refinance my house and the bank wants me to pay the money to the creditor if I don't get it off my report and it is a large sum. I was hoping I could dispute with the CRA and say the balance was $0. Maybe worth a shot? Also it was sold at one point to a collection agency (I think, because they were trying to collect it) yet suddenly that disappeared off my credit reports. So maybe they did sell it and the balance SHOULD be zero? I suppose it could have been some in house CA though? I just wonder if the CRA inquire if it will show $0 balance bankruptcy.

Hey Bruno, I don't remember signing anything, however I think my husband added my name on the card. I don't remember. I wish I would have known about fighting with arbitration before we got the judgement! I did that successfully with another account.

fisthardcheese

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  • They forced arbitration into your contract. Use it
Re: bankruptcy and credit report of spouse
« Reply #4 on: January 20, 2017 01:20:36 AM »
I would start with disputing it with the CRAs. 

Is this a card that has an arbitration clause in the agreement?
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

stevia

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Re: bankruptcy and credit report of spouse
« Reply #5 on: January 20, 2017 02:29:05 AM »
Oh, I am not sure! It is from a credit union. I didn't even look at the agreement since I already have a judgement against me from them. I found out about arbitration too late. Unless, you are asking for other purposes? Like threatening them with that for other possible violations if getting it off the report nicely fails? And before anyone thinks I am a terrible person, I never wanted to not pay a credit union. When my husband was injured and fired, I tried to pay them what I could and they were very mean and cold. They told me if I can't pay the entire payment every month (even though we had NO income), don't bother. They would not let me make partial payments. Then they sued quickly after,

fisthardcheese

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  • They forced arbitration into your contract. Use it
Re: bankruptcy and credit report of spouse
« Reply #6 on: January 20, 2017 03:51:27 AM »
Oh, I am not sure! It is from a credit union. I didn't even look at the agreement since I already have a judgement against me from them. I found out about arbitration too late. Unless, you are asking for other purposes? Like threatening them with that for other possible violations if getting it off the report nicely fails? And before anyone thinks I am a terrible person, I never wanted to not pay a credit union. When my husband was injured and fired, I tried to pay them what I could and they were very mean and cold. They told me if I can't pay the entire payment every month (even though we had NO income), don't bother. They would not let me make partial payments. Then they sued quickly after,

I did not see that there was a judgement on this, but arbitration could still be used to leverage them with FCRA violations.  The problem is that most credit unions do not use arb in their agreements anyway.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

Bruno the JDB Killer

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Re: bankruptcy and credit report of spouse
« Reply #7 on: January 20, 2017 01:09:01 PM »
Why not file your own BK?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

stevia

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Re: bankruptcy and credit report of spouse
« Reply #8 on: January 21, 2017 04:33:45 AM »
I need to refinance my house soon, that's why I did not file. I wanted to try credit repair first, and if it doesn't work, maybe I'd file. My debt really isn't too bad though. Most everything my husband had was in his name only.

CleaningUp

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Re: bankruptcy and credit report of spouse
« Reply #9 on: January 22, 2017 11:42:57 PM »
1.  The creditor doesn't care how dire your circumstances are.  Get used to it.

2.  Creditors don't care what you divorce settlement says.  The want their money.  See No. 1, Above.