Wife's credit card debt

[cis23]

YOUR STATE NAME - North Carolina. Can someone tell me what my wife's options are. She owes around 24k on her credit cards. All are in her name. None in my name. She is behind and out of work right now. She is 3 months behind on one she owes 17K+ on. What can she do? What can the credit card company do to her? Take property? Unsecured means unsecured right? I know her credit will be crap. Furthermore, what can the credit card companys do to me? Take my property???? Could she file bankruptsy being married to me. Our house has the loan in my name. ... the deed does have her name on it but the loan is only in my name.

[Ladynred]

The credit card company can't take property. What they'll do is charge off the account as a bad debt (usually at 120-180 days past due) and then they'll sell the account to a collection agency. The collection agency will harass her for payment, make threatening demands for payment and who knows what else. They could file a judgement against her and her wages would be garnished (if your state allows it).

Since it appears that the property is in your name only, and your name is not on any of her accounts, then you are fairly well off in that regard, they can't get to 'your' assets if her name isn't on them, nor can they ruin your credit. Its possible that with her name on the deed that they could put a lien on the property, which would be a problem should you ever decide to sell it.

She can file bankruptcy herself and it won't affect you other than future joint loan applications, etc. She could have all the credit cards discharged and be free and clear, but it will be on her credit report for 10 years.

She could try asking the credit card companies if they can put her on a 'hardship' payment plan, but they don't like if much if they do that for you and then you can't pay even that. She could try offering a settlement, but the credit card companies don't have to accept and they're not very flexible on the percentage they'll take. Unfortunately, settlements can have IRS/tax ramifications later in the form of 'cancellation of debt' income.

[bigun]

You 2 have a problem if it comes to a property lein or bk. Her name on the deed. See a lawyer about the advisability of filing a quit claim deed.

[cis23]

Thanks everyone. I really appreciate the response. What does this quit claim do? Thanks.

[totallybroke]

It will take your wife's name off of the deed. She simply signs it over to you.

[bigun]

Totallybroke is correct. One caution though. Don't do this unsupervised. Get a legal opinion particularly if bk is a realistic option. There are rules against property transfers in the year prior to bk and signing a quit claim deed is, a transfer.