Debt, Divorce, Bankruptcy, Help?

What is the name of your state? Michigan

I don't know where to start. I've been married for 33 years, trusted my husband, and know that I shouldn't have. He announced he was leaving me 3 weeks ago and has been clearing his belongings out of the house ever since. I have discovered a massive amount of debt, some of which appears to have been established fraudulently.

We have two mortgages on our home, the first was joint (he discharged it as part of a bankrupty he filed 2 years ago...didn't let me know he was doing that), the second is in his name (I'm not on the loan doc, doesn't show on my credit report, etc.). I'm leaving the house, as I do not feel safe staying there (...he still has keys, comes and goes whenever he pleases, all bills still in his name and having mail forwarded to his new address, afraid of what he might do upon being served with divorce papers, etc.). I'm taking responsibility for the 1st mortgage, divorce or not, what is my responsibility for the 2nd mortgage given my situation? Is there anything I can do to ensure that I am not made responsible for this debt as a result of the divorce proceeding? Any negatives to me leaving the house (...it's a wreck and is worth less that is owed on it)? I've already determined I can't discharge this in bankruptcy because the creditor does not hold me responsible. Do I have any other options? I want to avoid bankruptcy if possible and continue to take responsibility for the debt that I established, but the pile of debt that I'm looking at that I had nothing to do with establishing is frightening.

I have received two collection notices in the past couple of weeks for credit cards that I know nothing about. One of them is a notice of arbitration. It is my position that my soon-to-be ex-spouse established these accounts in my name and then hid the statements and collection notices from me for at least the past two years. The original creditor and collection agencies are all unwilling to help me. I have asked for documentation proving it is mine (...signed credit application, credit slips/drafts, etc.), but have gotten nowhere. Help?

[Ladynred]

OMG, what a mess to have dumped onto you !

I know you siad you're leaving the house, but I'd get all those locks changed ASAP. If he still has stuff there, box it all up and let him have it but I sure wouldn't let him back in that house - even if you ARE leaving it.

First, NONE of the debt in HIS name is your responsibility in ANY way.. he'll hang himself with it since he cannot file for bankruptcy again for another 4 years. If he put your name on the accounts fraudulently, as joint, you'll have a problem.

I'm taking responsibility for the 1st mortgage, divorce or not, what is my responsibility for the 2nd mortgage given my situation?

** Nothing. As long as your name is NOT on that loan, you have no liability.

Is there anything I can do to ensure that I am not made responsible for this debt as a result of the divorce proceeding?

Get a good divorce lawyer and make sure he/she knows of his deceptions and fraud and HIS debts won't get piled onto you.

Any negatives to me leaving the house (...it's a wreck and is worth less that is owed on it)?

Depends on what you plan to do. If the deed is in both names, get him to sign a quit-claim on it. Do you intend to sell it ? If you file for bankruptcy and do NOT want the house, then you CAN include the house. It'll be forclosed on and eventually sold, but you won't be liable for any deficiency. Do you know if he reaffirmed the 1st mortgage in his bankruptcy ? I'd get to the Fed courthouse and get a copy of those papers if you don't have them. You need to know EXACTLY what was done. He may have forged your signature on a reaffirmation if he even did one. If he did reaffirm, then HE would still be liable for it !!

I've already determined I can't discharge this in bankruptcy because the creditor does not hold me responsible.

If that 2nd is in his name only, that's true. All that means is that you would include the FIRST mortgage on your BK filing and he'd be stuck - big time- with the 2nd and any deficiency for the 1st if you let the house go !

but the pile of debt that I'm looking at that I had nothing to do with establishing is frightening.

Well.. as long as YOUR name isn't on those accounts, then you don't have to worry about it. So, you need to find out if any of those accounts have your name on them in any way as a joint account holder. Pull all 3 credit reports, they would show up there.

As for the accounts he took out in your name, file an identity theft/fraud complaint with the police. You then take that police report and send copies of it to the creditors that he opened fraudulent accounts with in your name. You also need to send the same report, and a letter, to the collectors and the law firm that's after the arbitration. Send everything certified, RRR and keep copies of everything. You also need to put a fraud alert out with the credit bureaus. With their new fraud initiative, you can get that done with all 3 with 1 phone call.

To fight the collections and arbitration, asking for records is only effective if you do so in writing. You need to send them all letters stating you've been a victim of fraud. They'll send you a fraud affidavit that you'll have to fill in and send back (make copies !) and, again, send it back certified RRR. Fighting this will require some patience and diligence and a good paper trail.

The arbitration is the most menacing at this point, so you need to send that letter first. If you demand it, they will have to produce at least a copy of the original agreement with a signature on it.

You can use this letter (there are others on the same site), it says you're a victim of fraud and you're demanding they produce proof (validation):

[url]http://www.creditinfocenter.com/forms/sampleletter9.shtml[/url]

This is your right under the federal Fair Debt Collections Practices Act (FDCPA). You really have to start with that police report, otherwise fighing fraud is going to be very difficult and you'll be stuck and likely will have to file for bankruptcy.