Credit Card Liability...

[grioghair]

*I am from Indiana*

I am filing for permanent residency through Indianapolis at the present time - a process that is near to being completed. I have never owned a credit card in this country, and I was wondering what the law was in Indiana concerning liability on credit cards payments. Is it just the owner of the card who is liable for payments, or does liability stretch to your spouse under Indiana law?

Steve

 

[Ladynred]

Indiana is NOT a community property state. Any debt in YOUR name means only YOU are liable for payments.

 

[grioghair]

Indiana is NOT a community property state. Any debt in YOUR name means only YOU are liable for payments.

Can you explain this "community property state" a little more? I also have a scenario for you: I came to America six years back and married my US wife. Her ex-husband had run up a rather large phone bill several years previously of several thousand dollars...and they declared bankruptcy. My wife has always said that that had affected her credit rating - them being a married couple at the time. What is the difference between a scenario like that, and merely being married to someone yet owning a credit card in just my name.

Thanks,

Steve

 

[Ladynred]

Community property means that when you get married, all assets and/or debts that a couple acquires during the marriage, are the property/liabilities of BOTH people. So even if a credit card account only has one person's name on it, if the account was opened and used while they are married, BOTH of them are liable for the debt. When you acquire assets, that asset's value is split 50/50 between the two of them. In a community property state - and there are only 11 of them - what's mine is yours and what's yours is mine !

Her ex-husband had run up a rather large phone bill several years previously of several thousand dollars...and they declared bankruptcy. My wife has always said that that had affected her credit rating - them being a married couple at the time. What is the difference between a scenario like that, and merely being married to someone yet owning a credit card in just my name.

Huge difference. Did your wife and her ex file bankruptcy JOINTLY ? If only he filed, was the phone bill in BOTH names (joint account) ?? In either case, the bankruptcy would go on both credit reports. If she did not file with him and the phone was not also in her name, then the bankruptcy probably should NOT be on her credit reports.

When you're married and you're NOT in a community property state, you are NOT automatically liable for your spouse's debts if the account is ONLY in your name. Your accounts should never appear on her credit and hers should not show on yours - unless the account is applied for as a JOINT account. What's yours remains yours and what's hers remains hers.