Can I be held liable for my wife's delinquent credit account?
Question Details:
She had an initial credit of $300 at a company and she failed to make payments and soon the interest had it well over $500. I had made payments of $ 50/month for about 6 months and I could no longer pay this debt. This happened about 4-5 years ago. Now it's well over $1800. She was layed off from her job a year and a half ago and has not found anything since. At this verbal hearing they want to see our taxes for the last 3 years and her assets. Her name is on my checking account and our home. Will they be able to make me pay this debt if it's not in my name?
I am a Maryland barred attorney -- in this state, if you own your home and or credit account tenants by the entirities, this is often the best way to protect your resources and you do NOT want to separate it into an individual name. This is because creditors of only one of you cannot attach assets held as husband and wife in the state of Maryland. (Note that if both of you are on the debt, a creditor could attach a jointly owned asset). You will need to obey any court subpoena, but it does not make you liable on your spouse's debt. I recommend you talk to an attorney before taking any action.
Contracts may only be enforced against the people who are parties to them. However, in some states, there are laws known as community property laws, that state that the debts acquired by one spouse become debts of the marriage and the creditor may go after either spouse for the money. I do not believe that MD is a community property law state, however, you need to check with a lawyer. Assuming that it is not, the creditor cannot come after you because the debt is NOT in your name. However, as you point out, your wife's name is on your checking account and home. Therefore, the creditor may lien your home and take all the money out of your joint checking account to satisfy the debt. i would separate your account asap to prevent this.
