Please help

[creditguy14]

What is the name of your state? MA

In 1995, my wife was approved for a $14M personal loan, secured by her automobile. She was not the most credit savvy person at the time and did not have the financial means to repay the loan, hence the loan was defaulted. We met in 1998 and have been married since 2001. Yesterday, in the mail we received a summons to court stating that a judgement was passed against her and she owes that sum of money and needs to appear in court to resolve the payment structure.

Currently my wife is a housewife and mother, she has not worked for over a year and does not have any real assets. Her automobile was totaled in an accident in 2001.

My question is, can the court force me to make payments when the debt was acquired prior to me even meeting her and only her name is on the note. Secord part of the question, with her not having any savings, tangible assets or income, what will the judge do?

Thank you very much

[DebHgn]

First, don't let this ruin your holiday. Second, how did a judgment already be against her, without her being given notice as to a hearing? Was she served with a summons before and failed to appear? NEVER DO THAT, always so up. Third, 14M as in million??? Exactly what was she served with, and order to appear? IMO, it's likely a summons to appear in court for the Judge to hear a Motion for Judgment. This is in no way an ORDER from the judge to make your wife do anything, if this is the case. Don't be too concerned. Evidently the creditor isn't to have waiting this long. Also, is this the orginal creditor or some attorney reprsenting a collection agency? If it's an attorney representing a collection agency, they have likely bought the defaulted loan and trying to get some money out of it. Also in that case, do a search at some of the complaint boards and see if that agency appears. ripoffreport, complaints.com, igotissues.com. Hope this helps some.

[creditguy14]

Thank you

The loan is $14k, I use MM for millions, I apologize for the confusion. I believe she was given a summons to appear and did not, but this would be over a year ago. This is a creditor that purchased the paper from the original financial institution at 10 cents on the dollar and now is trying to collect. There is an attorney representing the collection agency. This is a summons to appear but if she does not the notice states a warrant for her arrest would be issued.

I am just curious what they could possibly do, since she does not have any assets or income and could they force me to make the payments when I did not have anything to do with this loan?

Thank you again.

[DebHgn]

When ever you are served with a summons to appear in court. You must always go. Otherwise the other side wins by default. Just show up, they may make her pay a minimum amount of a payment, but again check out the collection agency. Many are under investigation and if this one is, you want to know about it going in. Judge may scold her for defaulting on payment, or something. However, the judge would much rather see the orginal creditor there instead of an attorney from a collection agency taking up his valuable time, especially during the holiday season. Also wear something real Christmasy to court...

This is just my opinion and from my experience.

[ihatearizona]

The court cannot force you to pay for your wife's debts. But, if you have a joint bank account they may try to take funds. If your home is deeded jointly they could place a lien against it. Same thing with automobiles.

Make sure any items that have been co-mingled get separated ASAP.

[creditguy14]

Thank you both.

Our accounts have always been separate, NEVER, joint, we rent and both Cars are under my name. Since she is a housewife/mother we just decided to do this from the start not because of this. I appreciate all your help, thank you.

[Ladynred]

Since they already have a judgment, this summons it appear is for a debtor's exam. They will grill her on everything financial as they are trying to find out if she has any assailable assets or wages that they can go after. She MUST go to this or she can will be held in contempt of court and a warrant can be issued for her arrest.

[creditguy14]

Originally Posted by Ladynred

Since they already have a judgment, this summons it appear is for a debtor's exam. They will grill her on everything financial as they are trying to find out if she has any assailable assets or wages that they can go after. She MUST go to this or she can will be held in contempt of court and a warrant can be issued for her arrest.

The debt is $14k, and she does not have any tangible assets, is the buden of proof here on her or on the CA? She is a housewife, thus I pay 100% of bills/expenses. I purchased both our cars and we rent. Our bank accounts are separate and her account has an average monthly balance of less than $10. I am just curious what the CA and the Judge would do in such a case.

Thank you again.

[Ladynred]

Without assets or wages to go after, there isn't anything they CAN do except harrass her with debtor's exams periodically. Any personal property she has is likely to be all exempt from siezure, though she may have to file the form to actually claim her exemptions. Her interest in any marital assets would only be half of a garage-sale value.

Its easy enough for them to confirm that there is no real property owned with her name on it and to confirm the cars are titled in your name and not hers. Judgments are good for 10 years and may be renewable, so its not about what she has NOW that will matter, its what she could come into later. Should you buy a house, for instance, you would have to keep her name off the deed.

She will have to produce proof, I'm sure they'll ask for papers to prove her no-asset position.

[creditguy14]

Thank you very much for all your assistance.

[creditguy14]

Originally Posted by Ladynred

Without assets or wages to go after, there isn't anything they CAN do except harrass her with debtor's exams periodically. Any personal property she has is likely to be all exempt from siezure, though she may have to file the form to actually claim her exemptions. Her interest in any marital assets would only be half of a garage-sale value.

Its easy enough for them to confirm that there is no real property owned with her name on it and to confirm the cars are titled in your name and not hers. Judgments are good for 10 years and may be renewable, so its not about what she has NOW that will matter, its what she could come into later. Should you buy a house, for instance, you would have to keep her name off the deed.

She will have to produce proof, I'm sure they'll ask for papers to prove her no-asset position.

What kind of proof/papers? Please?

[Ladynred]

Copies of car titles that show her name isn't on them, things like that.