It's not mine, I swear!

February 29, 2008 9:16 AM

Creditors are starting to harass me again for old debt that I don't believe I'm responsible for.

I divorced back in 2003. In the settlement, my ex-husband and I were each assigned a handful of credit accounts. I paid mine off, he filed a chapter 13 bankruptcy. Two credit agencies are now contacting me about (2 different) credit card debts, both of which are the responsibility of my ex-husband according to the divorce settlement.

I have a copy of the bankruptcy matrix which lists both of the credit accounts. I've faxed the matrix and copies of the divorce settlement to both credit agencies but both say that since I was the primacy cardholder, that I'm responsible for the account.

My ex-husband and I are no longer in contact, although I do have his cellphone number (but he refuses to discuss this issue). Creditors are not interested in contacting him. In the meantime, my credit rating continues to suffer with these 2 bad debts on my report.

I have the bankruptcy matrix, the case number, and the name of the lawyer that handled the bankruptcy (although he refuses to give me any information about the case). What do I do now? I live in Kansas, if that matters.

posted by mezzanayne to work & money (9 comments total)

I am definitely not a lawyer, but it is my understanding that if the debt is in your name, you can still be held responsible for it.
posted by Cricket at 9:24 AM on February 29

By "both credit agencies" I assume you mean creditors. Have you tried sending the divorece decree/settlement to the credit reporting agencies? Equifax, TransUnion, and Experian. That should take care of your credit rating. The bankruptcy papers are a non-issue since it wasn't your bankruptcy. Without that divorce decree you would still be responsible. The creditors should be off your case since you have an order signed by a judge clearing you of responsibility for the debts, but that doesn't mean they won't try to buffalo you into paying.
posted by curlyelk at 9:30 AM on February 29

"Divorce lawyers may tell you that your creditors will accept the divorce decree and relieve you of your ex's debt. Don't believe them. When two people jointly apply for credit, they sign a legal agreement to the creditor to pay back the debt. If one can't pay, the other is responsible. A court cannot overturn contracts between individuals unless they are fraudulent or not lawful. A divorce does not fit either of these definitions, so the contract remains in tact until the contract ends (when the debt is paid off)."

From Credit Info Center. Since your ex has declared bankruptcy, the other responsible party is you.

My brother got his first marriage annulled, and for this reason, he took on all the debt- and paid it all off. I was lucky with my ex-husband- he'd already ruined his credit so we had nothing in a joint account.
posted by Monday at 10:16 AM on February 29

Further down the same page:

"Especially tragic are situations where one ex-spouse files bankruptcy and includes many joint debts in the BK. The spouse not filing bankruptcy is left holding the bag for these joint debts, and many times is not notified of the ex-spouse's filing until months or years down the road when it is too late to correct the situation. So not only is the spouse who didn't file BK responsible for the unpaid debts (and can be legally sued for them), but the non-filing BK spouse's credit also is ruined - something that cannot be corrected - because the credit bureaus have the right to report them delinquent."
posted by Monday at 10:20 AM on February 29

Is there an indemnification clause in the divorce decree that says if he doesn't pay what he is supposed to, you can go after him for it?
posted by pointystick at 10:35 AM on February 29

My bad. I was wrong as Monday illustrated.

In the mortgage business divorce decrees are often accepted as proof you aren't obligated for a monthly debt. So that was my frame of reference.
posted by curlyelk at 10:48 AM on February 29

I have been told that, since I am being audited for IRS debt from my marriage and my circumstances are similar to yours, my best course of action is to pay the debt and sue my ex in small claims court for the amount that is his. Is this an option for you? Small claims court is relatively inexpensive and you have a greater chance of recouping the debt this way. I am sick of seeing repo men peeping in my windows and signing for registered debt letters for his dumb ass, too, by the way, so if you want to commiserate, memail me.

IANAL, so if I am wrong about this, please someone correct me.
posted by Unicorn on the cob at 11:41 AM on February 29

There is a relevant article on cnn.com this morning.

Once you're contacted by phone, you have the right to get a notice that outlines your debt, whom you owe money to, and what action to take if you don't owe the money. Keep in mind that a debt collector can collect a debt owed by an ex-spouse. If the debt was incurred while you married, you may be liable for the debt after a divorce even if the divorce papers state your spouse is responsible for paying off the debt.
posted by TravellingDen at 11:57 AM on February 29 [1 favorite]

I'm assuming that creditor means the company itself and not a collection agency. If it is just a collection agency, you need to contact the company with which your "debt" originates; you also need to inform the collection agency that you want them to list this debt as "in dispute". A record in dispute will usually have a cease put on your record until the company with which you have the debt clears up what is going on with you.

If it is the company directly, consider filing consumer complaints as well as notifying your ex-husband about what's going on.

I personally wouldn't hassle with small claims/law suits until you've exhausted other options have been explored and exhausted. Better Business Bureau maybe be of help and you should contact them. You may be able to get a complaint filed through them, or they can give you helpful phone numbers to the agencies which can help you.
posted by Gular at 1:39 PM on February 29 [1 favorite]