Who is responsible for CC's? Court order, or Account Holder?

[PandoraOK]

I would appreciate any advice for this Oklahoman! My ex volunteered to take two credit cards when we divorced. I am the sole owner on one account, and the other account we share. I have had a hard time in the last three years trying to get him to pay. He now owes me 3K plus the balance of the two cards. For at least a year, I have had a contempt of court case open on the dockets in the event he doesn't pay. Who is the owner of these cards? The courts see him as owner, because he got them in the divorce settlement. The CC co's are saying I'm the owner and I am responsible. He has finally decided to file chapter 13, because he has accumulated even more debt since our breakup. An atty I consulted with said I really can't do anything right now, because his bankruptcy case isn't up for filing claims yet. In the meantime, the creditors are calling saying I am responsible anyway for these cards, and that they do not honor divorce decrees. I am currently not paying them, because he accumulated this debt and I don't feel it is my responsibility. The atty says my ex will find that he cannot file on the cards because they are open in court. This leads me to several questions: why are there loopholes in the divorce/debt game? If the court says my ex is responsible for paying, then why do the cc co's say I am? If he files bankruptcy, he is allowed to list me AND the credit cards as creditors. Why is he able to do this when the cc co's don't see him as owner? This problem sounds like the courts and the credit card co's need to battle it out. Whose rules do I follow? I guess that depends on if I want my credit ruined?

Thank you for any advice!

 

[I AM ALWAYS LIABLE]

My response:

In summary, your question is why aren't the Credit Card companies abiding by the divorce decree ?

First, the court is saying that he owes the debts and that is what your ex agreed to accept under the Settlement Agreement (the Agreement).

The only parties to the Agreement are the court, you, and your ex. The Agreement is "contractual" in nature between all three of you - - with the added remedial action of "contempt of court" for a breach of that Agreement.

You must understand that the CC companies are not parties to your Agreement - - i.e., they are not under court order to accept or agree with the Agreement. They have their own contracts that were signed by you and your ex. It is those contracts that the CC companies can enforce. Under those contracts, you are one of the people responsible for those CC debts, and the CC companies can, and will, hold your hand to the fire on those debts. If the CC companies take you to court, for example, and you try to explain to a judge that you have this Agreement from your divorce that says your ex is responsible, you'll have a judge and a creditor just look at you in amazement, with a "So what ?" look on their faces.

That's because the CC companies are not parties to the Agreement with your ex.

Now, insofar as your ex's Bankruptcy is concerned, he can file BK on all of his debts - - as long as his use of the CC cards were not used within the past 6 months. Otherwise, those debts are excluded from BK and looked upon as a fraud upon the court and CC companies.

However, if your ex is successful in having the CC debts discharged, remember two things:

1. Federal Bankruptcy law always "trump" State court orders. That means, if he discharges the debts in BK, that portion of your Agreement with your ex is then "void".

2. Since the CC companies have a contract with you, they will come after you since they can no longer go after your ex. Remember, the CC companies are not parties to your Agreement with your ex.

If your ex has filed for BK protection, there is an automatic "stay" on the State "contempt" proceedings until a final decision of the BK court has been rendered. However, that does not place a "hold" on the CC companies from going after you - - unless, of course, you file for BK protection yourself.

IAAL

 

[PandoraOK]

Thank you very much for the prompt reply! Now I'm scared...