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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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My wife wanted a trial separation for 6 months - and we are

Resolved Question:

My wife wanted a trial separation for 6 months - and we are now back together. During the time she was gone - she applied for, received, and maxed out credit cards to the tune of $10K +

We are in Michigan, she gets SSI for disability, we have a joint checking account that her SSI is direct deposited to, and the only thing in her name is XXXXX XXXXX on our house (no equity whatsoever). The LOAN is in my name only - but the TITLE shows both names.

Do i need to do a quit claim for the house - or is it too late? The C.C. companies are starting to call now for her delinquent payments... as she has chosen to NOT pay them - stating they can't take anything from her.

Is it true? Can she just ignore the debt? I don't want a lien or frozen bank account

Please advise.

Thanks!!
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 3 years ago.
Chat Conversation Started
Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

If she fails to pay them, the accounts will be referred to collection agencies who will call non-stop to collect these debts.

Terry L. :

If that fails, they will sue.

Terry L. :

When they obtain judgment, they can freeze bank accounts and garnish wages. Since she is on SSI they cannot garnish that. They can freeze the bank accounts though, and she'll need to go to court to explain that the only funds in there are the SSI to get released, but that will cause problems with bill pay etc until it is released.

Terry L. :

As for the home, the creditors could possibly set aside the quitclaim if it was preferential to avoid debt payment.

Terry L. :

Also, depending on how title is held, creditors may not be able to attach the home if it is held as tenancy by the entirety.

Terry L. :

She may want to talk to a local bankruptcy attorney to review a chapter 7 possibility.

Terry L. :

She may have to wait a bit to avoid the recent usage issue, and make minimum payments for several months before filing.

Terry L. :

the attorney will be able to properly advise the best time to file.

Terry L. :

Do you have any questions?

Terry L. :

Thank you for your question, good luck .feel free to request me for any further questions. Thanks

Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2503
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.
I understand she should talk to a bankruptcy lawyer - and thats why I cam here first to see what MY options were - since she feels they cannot collect on her.
Expert:  Terry L. replied 3 years ago.
Since she is on the title to the home, she isn't quite judgment proof. IF they get a judgment, they can possibly slap a lien on the home which will remain until paid or the house is sold. Talk to a local bankruptcy attorney, bring in your mortgage documents and they can review if that is a good option for her. Most offer free consultations so you can be well informed before you and her decide the best path.

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