Verbal Agreement

[PATRICK99]

What is the name of your state? Maryland

In April 2000, my girlfriend and I established a joint credit card account. 4 months later we broke up. At that time there was $3000 worth of furniture charged to the account. Before I left the relationship, I called the creditor and froze the account. The creditor would not take my name/liability off the account, even with the joint account holders permission.

During this time, it was agreed, verbally, that she was to take the proceeds (furniture, etc.) of the account and the responsibility of the debt.

I just received a call a month ago from the creditor stating that on 6 different occasions the account has been delinquent "over 30 days" without payment. Currently, the balance is $3600. with not payment in 60 days. I made a payment of $76 dollars to hold of the creditors, so that I may contact the "other" account holder. This is severely hurting my credit.

I contacted my ex-girlfriend via email and she gives excuses; didn't receive the bill, etc. However, on the email she re-confirms our agreement and her responsibility to the debt. It has been one month and she is late again payments. Is there anything I can do, legally, regarding the enforcement of our agreement?

Thanks in advance for your response.

 

[nowpastdue]

I am NOT an attorney.

#1 Maryland Small Claims Court max limit is $2500.

#2 As of your posting your portion of the debt is $3600 as is hers. You are each legally responsible liable for the entire amount. Yes, in your mind and maybe morally you are responsible for only $1800, only that is not what you agreed to in writing.

#3 I trust you know that your agreement between the two of you is just that and does not involve the furniture dealer at all?

#4 Where is the furniture physically? I know she has/had it. Did she possibly remove it from the state of Maryland?

#5 You could conceivably sue her in court and have at least a 50/50 chance of winning. Ok, let's say you win, does she have the money or assets to pay the judgement? Probably not, so all you've done is spend more money for a paper that may one day get you some money.

#6 You are concerned about your credit. Her inactions, as well as yours, are hurting you. Best advise to you I can give is borrow the money to pay the debt off entirely and chalk it up to experience.

 

[PATRICK99]

Thanks for the reply.

I understand that as far as the creditor is concerned, Her and I both are 100% liable for the debt. She has all the furniture and has not moved out of state.

Morally, I believe that I am responsible for $0. I never received any proceeds of the account nor enjoyed the benefit of owning them. Verbally and again on email she confirmed our agreement (which I have documented) that she is to pay the debt entirely. She has yet to act upon it.

If I paid the debt, ofcourse that would clear up the credit problem, however, I would have to pay for her furniture that never was mine. There has to be other remedies?

I was hoping that based on our "personal" agreement, the court could issue an order for her to pay the creditor, based on the fact that she hasn't paid and that her non-compliance with our binding agreement is affecting my credit negatively. This order would be made based on our agreement and not the agreement with the creditors.

Anyone's Thoughts?

 

[nowpastdue]

I am NOT an attorney.

We are back to #5. If she lost in court the other side would be awarded a judgement of x$. You are the one considering taking her to court not credit card company.

So, are you saying that she is just refusing to make the payments although she does have the money to do so? If she has the money, no problem, sue away.

If she actually doesn't have the funds, she doesn't have attachable assets, and maybe like she isn't even working then there is little chance of you collecting anything on your judgement now, maybe later is a different story.

Meanwhile, the clock is still ticking on damaging your credit.

Tick tock.

 

[PATRICK99]

Thanks for the reply.

The person is a police officer and is plenty capable of making these payments. The payments are quote "not a priority". I have that on email from her.

I am currently filling out the form to file a small claim. I just have questions regarding my claim.

1. If I haven't lossed any money, since the debt not held by me, but by the creditors, what do I claim as my loss?

2. Do I just claim the credit debt as my loss?

3. Do I put a dollar figure on damage to my credit?

I just want to be sure.

Until this goes to court...I'll keep the account current.

Thanks.

 

[nowpastdue]

I am NOT an attorney.

Ok, you have chosen small claims, thereby limiting your potential recovery and her potential loss to $2500.

What can happen is you lose totally and we are back to square one. She can lose totally and she owes you $2500 and you owe the credit card company $1100 +the $2500 from her if you can collect it. Or the judge makes the judgement somewhere between $0 and $2500., same scenario.

We have established that she is employed . Can you spell garnishment and checking account. So we have hope after all.

On of the main requirement of small claims courts are that the plaintiff be able to establish and show a $ loss. That will require some document of payment. The only way I can see that you can establish loss is by paying the account off. That would entitle you to sue for $2500 and it would stop the credit damage.

Of course the court may hold that you have not suffered any loss at all even if you pay off the entire balance. You agreed to pay the balance when you signed the credit card app, you paid it, so where is you loss?


The court can only rule as to the two of you, the court cannot rule as to what you owe or she owes the credit card company.

You cannot claim in small claims court any amount for credit damage. Actually the best venue for your claim/case would be a higher court where the entire amount as well as other issues could be explored, but that would entail attorney expenses, etc.

If you do sue I'd be interested in learning how it turned out.

 

[PATRICK99]

I'll have to consult with an attorney and take this case in front of a higher court, one that can make decisions on my other issues regarding credit damage, etc.

Thanks for your input on this. I'll keep you apprised.