How does the charge card company recover what is owed?

[LindaP777]

What is the name of your state? OHIO

How does the charge card company recover what is owed? I'm trying to understand how this all works.

Wife has unpaid charge card debt prior to marriage. No job and has small children at home that she is caring for. Credit card amount has tripled to where minimum payments on charge card are even to high to pay. Credit card company is suing her for unpaid debt and will no doubt, win (debt is owed). Wife has no way to pay it and absolutely no assets in her name.
Husband owns house in his name only and is sole provider for family and barely making it.

QUESTION; can credit card company put lien on the house (only in husbands name) or attach husbands wages?
If wife dies, does the debt become the husbands?
How many years (if ever) before an unpaid debt disappears?
Is it best for wife alone to file bankruptcy?
Would bankruptcy affect house (in husbands name only)?

 

[LindaP777]

BUMP
(Please help if you can.)

 

[Ladynred]

QUESTION; can credit card company put lien on the house (only in hisbands name) or attach husbands wages?

NO. If the house is only in HIS name, creditors cannot touch it. They cannot garnish HIS wages for HER debt either. OH is NOT a community property state. However, if there are bank accounts that are in BOTH names, those bank accounts can be cleaned out. The husband would have to show proof that NONE of the funds in the bank account belong to wife.

How many years (if ever) before an unpaid debt disappears?

Technically - Never. While the expiration of the Statute of Limitations (SOL) can afford a defense if sued, it does not extinguish the debt. The SOL in OH is a whopping 15 years.

Is it best for wife alone to file bankruptcy?

If there's that much debt and she has no income.. yes, that's probably her best option.

Would bankruptcy affect house (in husbands name only)?

Probably not, but it would be best to consult with a bankruptcy attorney in OH to be 100% sure.

 

[LindaP777]

Much Appreciated!!!

 

[TigerD]

A minor correction/addition to LNR's post -- the husband's income is considered in BK even if he isn't filing.

DC

 

[LindaP777]

Good to know! Thanks!

 

[Ladynred]

Yes, his income would have to be part of the means test, as household income.

 

[LindaP777]

Will the credit card company issue her a 1099 for the unpaid debt?
Will the wife have to report this as income?

 

[Ladynred]

Yes, and yes.
However, if wife can prove to the IRS she was insolvent at the time (form 489 I believe), then the income won't have to be claimed.