Assigned Marital Debt with a previous Default Judgement Orde

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Assigned Marital Debt with a previous Default Judgement Orde

Unread postby Tld2017 » Wed Nov 29, 2017 9:53 am

Living in Georgia which is an equitable property state.

Wife had individual debt that was assigned to husband in MASA.
Found out after the agreement was signed that there was already a default judgement ordered on the wife for one account, prior to agreement being made.

Question is: if a default judgement was ordered on the wife for her individual debt, prior to the agreement being signed ordering him to take over the account, is this account still the husbands responsibility? Wife never disclosed that this account (or others) were in collections prior to the agreement.

There is an indemnity clause in the divorce decree stating that the husband should be held harmless in the event that legal action is brought against by the creditor for the wife’s debts. The tricky thing is that the husband was ordered to pay this debt, but legal action was already brought against the wife PRIOR to the agreement being made and signed.
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby TJinCA » Wed Nov 29, 2017 12:23 pm

This sounds like it's potentially complicated and confusing.

If you agreed to pay the debt in the settlement agreement and you pay teh amount specified in the agreement, what happens then? Is there still an issue because of the judgment against her?
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Havalu7 » Wed Nov 29, 2017 12:33 pm

And you are whom in this riddle?
"No." is a complete sentence.
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Tom Kirkpatrick » Wed Nov 29, 2017 2:20 pm

Tld2017 wrote:.....is this account still the husbands responsibility?
For starters Bro, the lender is not bound by terms and conditions of your decree.

Here's the deal: As long as your name isn't on the account, then the answer to your question is, "NO." Frankly Bro, the lender doesn't care who pays wife's debt.

Final order notwithstanding, as far as the lender is concerned, your ex remains responsible for her debt, not you. Although your decree states differently, unless your name is on wife's account, family court has no authority to transfer wife's default judgement to you. But to stay out of hot water, just make sure you make reasonable payments, like $1.00/mo or something (LOL).

Tld2017 wrote:Found out after the agreement was signed that there was already a default judgement ordered on the wife for one account.....
Do diligent research ahead of time. Be careful what you agree to.

Tom
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Tld2017 » Wed Nov 29, 2017 9:25 pm

TJinCA wrote:This sounds like it's potentially complicated and confusing.

If you agreed to pay the debt in the settlement agreement and you pay teh amount specified in the agreement, what happens then? Is there still an issue because of the judgment against her?


That’s the other question in this scenario. And it is extremely complicated and no one, not even my lawyer can really even steer me in the right direction as far as definitively what is the right or wrong way to go about this.

Ive already had to start dealing with the scenario as you’ve asked above. Paid the amount listed on her financial affidavit and she’s saying now that that amount is incorrect due to late fees, on 2 other accounts.
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Tld2017 » Wed Nov 29, 2017 9:30 pm

Tom Kirkpatrick wrote:
Tld2017 wrote:.....is this account still the husbands responsibility?
For starters Bro, the lender is not bound by terms and conditions of your decree.

Here's the deal: As long as your name isn't on the account, then the answer to your question is, "NO." Frankly Bro, the lender doesn't care who pays wife's debt.

Final order notwithstanding, as far as the lender is concerned, your ex remains responsible for her debt, not you. Although your decree states differently, unless your name is on wife's account, family court has no authority to transfer wife's default judgement to you. But to stay out of hot water, just make sure you make reasonable payments, like $1.00/mo or something (LOL).

Tld2017 wrote:Found out after the agreement was signed that there was already a default judgement ordered on the wife for one account.....
Do diligent research ahead of time. Be careful what you agree to.

Tom


Understood. But my question is, since this account was already under default judgement prior to the agreement being made where I have to take it over, is it even my responsibility at all. Since a) she didn’t disclose that b) the default judgement was ordered against her a month before we even made any agreement, & c) since she is refusing to cooperate to provide the creditor consent to speak with me (which she has to do because my name is not, and has never been, on this account
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby TJinCA » Wed Nov 29, 2017 10:10 pm

If you never signed anything directly with the lender, I don't think they have any recourse against you. And if you paid what she claimed and you agreed to under the MSA (assuming the agreement specified the amount of the debt) I think you're clean there. Anything additional that the lender wants is her responsibility.

If the MSA just said that you'd pay this debt and didn't specify the precise amount then 1) shame on you and your lawyer for signing off on such a vague agreement; and 2) under the MSA you may be responsible for the full amount of the agreement. But the lender would still go after your ex for the unpaid amount, not you.
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby a dad » Thu Nov 30, 2017 12:43 am

Additionally, she'd have to take you to family court to get the amount due in the agreement.

However, the easiest route is to pay the amount in the agreement and send her the receipt.

But you said you're ordered to pay the debt and you also said you're ordered to take over the account. Are you ordered to become the responsible party for this account?

Can you pay off the amount due in full? Many collection agencies will settle for less than what was due which would leave you paying less with no marks on your credit since it's in her name.
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Tom Kirkpatrick » Thu Nov 30, 2017 12:54 am

Tld2017 wrote:Wife had individual debt that was assigned to husband in MASA.
We need to know specifics of wife's debt. What are terms and conditions for servicing debt(s)?? How many accounts are involved?? In dollars and cents, how much money are we talking about in actual debt principle?? How much money in interest, penalties, and fees; etc??

Did wife's debt occur during marriage??

In terms of favorable settlement, what did you get of significance in return for assuming wife's debt??

Tld2017 wrote:a) she didn’t disclose that.....
Nondisclosure. You may have a loophole. There's a chance you can have this provision set aside.

Tld2017 wrote:Paid the amount listed on her financial affidavit.....
Whose affidavit?? Explain affidavit content in detail.

Tld2017 wrote:.....she’s saying now that that amount is incorrect due to late fees, on 2 other accounts.
1) She's moving the goal posts, Bro. That's why you divorced her.

2) You must never take legal advice from your ex.

If you paid the amount(s) assigned, that's all you hafta worry about.
BTW - At the time of the agreement, in dollars and cents, how much debt was assigned??

Tld2017 wrote:.....since this account was already under default judgement prior to the agreement being made where I have to take it over, is it even my responsibility at all.
Like I said earlier, "No, it's not."

1) Decree notwithstanding, servicing her debt is not your problem.

2) So long as you're making token monthly payments, if push came to shove, you will be held blameless in family court (if it even gets that far).

3) If wife's creditors come after her, that's not your problem.
Wife's creditors don't care about your decree provisions. They will not come after you. There's no need for you to worry about that.

Did you agree to go to debtor's prison on her behalf as well?? LOL

.....shame on you and your lawyer for signing off on such a vague agreement.....she is refusing to cooperate to provide the creditor consent to speak with me.....
This is what you get for 1) Signing a blank check. 2) Being left out of the loop.

In order for you to service her debt properly, your ex needs to sign a release.

Tom
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Re: Assigned Marital Debt with a previous Default Judgement

Unread postby Tld2017 » Thu Nov 30, 2017 9:09 am

Tom Kirkpatrick wrote:
Tld2017 wrote:Wife had individual debt that was assigned to husband in MASA.
We need to know specifics of wife's debt. What are terms and conditions for servicing debt(s)?? How many accounts are involved?? In dollars and cents, how much money are we talking about in actual debt principle?? How much money in interest, penalties, and fees; etc??

Did wife's debt occur during marriage??
Yes.

In terms of favorable settlement, what did you get of significance in return for assuming wife's debt??
I got the house, my 401K and don’t have to pay alimony.

Tld2017 wrote:Paid the amount listed on her financial affidavit.....
Whose affidavit?? Explain affidavit content in detail.
The financial affidavit that she filled out and included in the divorce documentation. We filed for divorce in April. I wasn’t assigned to pay these debts until 9/30.
6 accounts. Totaling about $12,000.
Account 1) $213. I paid this off in full directly to the creditor. Ex wife just last week, gave me a copy of a statement that shows a balance still owed which she’s claiming are late fees, since she didn’t make a single payment on her debts between May and The time I started paying on 9/30.
Account 2) $62. Paid in full directly to creditor, same story as account 1.
Account 3) $6100. Been making monthly payments directly to creditor as of 9/30.
Account 4) $4300. Creditor will not speak to me without her consent, since my name isn’t and has never been on this account which she is refusing to provide.
Account 5) $745. This is the one with a default judgement ordered against her. Creditor will not speak to me without her consent, again, same story as account 4, she is refusing to provide, which leads me to believe she knows that I cannot be held responsible for this account and is why she is not providing the information necessary to myself, or them, to resolve.
Account 6) $575. Creditor will not speak to me without her consent, again, she is refusing to provide.

Now, my lawyer did tell me that on the accounts she’s refusing to do what needs to be done to resolve these accounts is all on her. She cannot win a contempt case since I can provide ample documentation of her refusal to cooperate and that I have been doing everything in my power to do to resolve this and hold up my end of the agreement.

.....shame on you and your lawyer for signing off on such a vague agreement.....she is refusing to cooperate to provide the creditor consent to speak with me.....
This is what you get for 1) Signing a blank check. 2) Being left out of the loop.

It’s not vague, it’s pretty specific, it’s just that as you put, she’s moving the goal posts and it’s hard to specify every single “what if” situation there could possibly be.
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