Are you responsible for spouses credit card debt?

In most cases you will not be responsible to pay off your deceased spouse’s debts. If there is a joint account holder on a credit card, the joint account holder owes the debt. A joint account holder is different from an “authorized user.” An authorized user is not usually responsible for the amount owed.

Who is liable for my spouses credit card debt?

Generally, if you and your spouse are joint account holders on the credit card, then you will be equally liable for the spending on the credit card. Co-signing on your spouse’s credit card will also make you liable for payments on that card. That fact remains true even if it was your spouse, not you, who did all of the irresponsible spending.

What happens if you get sued for credit card debt?

If it isn’t resolved, a lawsuit is only a matter of time. Credit card companies write off millions each year in uncollectible debt. If a lawsuit is filed, you MUST respond. If you don’t show up for the court proceeding, the judge automatically rules against you and will order you to pay the full amount.

What happens if my husband runs up my credit card?

That fact remains true even if it was your spouse, not you, who did all of the irresponsible spending. If your husband runs up your jointly held credit card playing fantasy football, or your wife runs off on a spontaneous solo vacation with the credit card you co-signed on, you are both still liable for the debt.

Who is responsible for a deceased spouse’s credit card?

Some states have community property laws, sometimes called joint property laws, that make any debt incurred on credit accounts opened during marriage automatically considered joint debts. In that case, you may be responsible for any debt that your deceased spouse incurred.

Generally, if you and your spouse are joint account holders on the credit card, then you will be equally liable for the spending on the credit card. Co-signing on your spouse’s credit card will also make you liable for payments on that card. That fact remains true even if it was your spouse, not you, who did all of the irresponsible spending.

If it isn’t resolved, a lawsuit is only a matter of time. Credit card companies write off millions each year in uncollectible debt. If a lawsuit is filed, you MUST respond. If you don’t show up for the court proceeding, the judge automatically rules against you and will order you to pay the full amount.

That fact remains true even if it was your spouse, not you, who did all of the irresponsible spending. If your husband runs up your jointly held credit card playing fantasy football, or your wife runs off on a spontaneous solo vacation with the credit card you co-signed on, you are both still liable for the debt.

How does credit card debt affect a divorce?

If you get divorced and your spouse has lots of credit card debt. As we’ve already mentioned, serious debt is sure to affect your marriage in some way. Unfortunately, if you decide to get divorced, your spouse’s debt problems don’t suddenly stop affecting you.

Can a credit card company sue a debt collector?

A creditor isn’t going to risk not recovering the $2,000 it must pay to a collection attorney to sue you over a $285.00 debt. That’s why credit card companies (and other big unsecured creditors) write off millions each year in uncollectible debt and simply pass on the cost of this to consumers in the form of higher interest rates and fees.

What are the odds you will be sued by a debt collector?

If it is unsecured, he might offer you a reduced settlement or new payment arrangement to get you paying again. Big creditors don’t sue over small debts. The collection letter claims that you will be sued for the $284.37 you owe the XYZ Credit Card Company, but the odds that they will sue are extremely small.

What happens if you ignore a credit card debt summons?

If you ignore your summons, the court is likely to rule in the debt collector’s favor and your wages could be garnished until you pay back the amount of money that the court rules you owe. If you are sued for credit card debt, your first step is to verify that the debt is actually yours.

Can a debt collector contact the spouse of a debtor?

“They can call, ask to speak with John, and ask whether this is a good number to reach him at, but they can’t be discussing the debt,” he says. Collectors are allowed to contact a debtor’s spouse, however.

A creditor isn’t going to risk not recovering the $2,000 it must pay to a collection attorney to sue you over a $285.00 debt. That’s why credit card companies (and other big unsecured creditors) write off millions each year in uncollectible debt and simply pass on the cost of this to consumers in the form of higher interest rates and fees.

If it is unsecured, he might offer you a reduced settlement or new payment arrangement to get you paying again. Big creditors don’t sue over small debts. The collection letter claims that you will be sued for the $284.37 you owe the XYZ Credit Card Company, but the odds that they will sue are extremely small.

Can a debt collector report a spouse’s debt?

Generally, no. The creditor or debt collector should not report your spouse’s debts to a credit reporting company under your name unless you: were a joint account holder; co-signed for the loan, account, or debt; or live in a community property state.

What happens if I dont answer a credit card lawsuit?

If you owe the debt and don’t file an answer to the lawsuit, and most people don’t, the court will enter what is known as a default judgment. The judgment is a court decree stating you owe the debt and that the credit card company has the right to take some of your assets to satisfy it.