Am I Responsible For My Spouses Debt In Georgia?

During a divorce, marital or separate debt has a major impact on how debt is handled. The majority of assets and liabilities accrued during a marriage are regarded as marital property, as explained in detail by the Georgia State Bar. Prior to marriage, a person’s assets are considered their own. Separate property and debts remain with the original owner after a divorce is finalized and an equitable allocation is made between the divorcing couple.

Even if one or both spouses accrued the debt, it is typically regarded as marital debt. When a co-signer on a credit card accrues debt, both spouses are likely to be held responsible for the amount. In divorce, credit card debt may not necessarily be divided equally by the courts. In the event of divorce, if one spouse is solely responsible for accruing debt, the debt may not be subject to distribution.

Is a spouse responsible for credit card debt of deceased spouse in Georgia?

As long as the wife has never signed an agreement with the credit card company, she cannot be held responsible for her husband’s credit card debts. When the spouse dies and the woman discovers that the credit cards have not been paid, this question is frequently asked. A lot of folks freak out when the bill collectors begin to call. There is no need for the widow to pay the bill collector. Which way you answer this question is what counts. What is the credit card agreement signed by? However, if she never signed a contract, she cannot be held responsible because her husband’s estate may be asked to pay for the obligation.

She is not responsible for the debt, even if she was an authorized signatory on the credit card account. In order to get a credit card in another person’s name, you don’t need to sign a contract. It’s possible that as a business owner, I may want to provide my office manager a credit card so she may purchase office supplies. Because she never signed a contract with the credit card company, she will not be liable for the debt if my business fails.

Don’t hesitate to ask for a copy of the legal agreement between Mom and Dad’s credit card company. Tell them you’d like to see where your mother’s signature is. If you are married in Georgia and your partner has debts, you are not obligated to pay them.

Chapter 13 and Chapter 7 bankruptcy options should be discussed with a bankruptcy professional in the event that Mom is liable and cannot afford to pay the debt.

There are certain exceptions to the basic rulebook. You need to consult with a bankruptcy attorney in order to get the whole picture of your position and get the answers you are looking for.

What is Chapter 13 about?

Secondly, what’s the name of Chapter 7?

How much does it cost to file an application?

Can I be held accountable for my husband’s debts?

When a spouse’s debts are in their own name, they are not liable for their spouse’s debts. Without both spouses listed as co-signers, however, one spouse will not be held responsible for the obligation of the other on that account.

Can a lien be placed on my house for a spouse’s debt in Georgia?

Even if your name is on the deed and your money has built up equity in the home, it is considered common property. As a shared asset, your spouse’s creditors may be able to put a lien on the house to collect on his or her obligation.

Is a spouse liable for medical bills in Georgia?

You are not legally responsible for your spouse’s medical expenses in Georgia simply because you are married. After an acute tragedy like Covid-19 corona hospitalization, cancer, diabetes, heart attack or some other health calamity that necessitates a substantial amount of medical debt for the spouse who has been afflicted, this concern often arises.

Marjorie, an old woman I met earlier this year, is the subject of this illustration.

Marjorie’s 401k account has grown to more than $300,000 throughout the course of her adult life.

As a result, she was left with approximately $200,000 in life insurance proceeds.

Several years ago, her spouse passed away from cancer, leaving behind a pile of medical expenses.

Marjorie spent all of her savings in the last few years paying medical expenditures for which she had no legal obligation.

She’s now living off of nothing but her social security payment each month.

The 401(k) and insurance money would have been safe if she had met with us sooner, and I would have told her that the creditors had no claim on the 401(k).

Over the past 22 years, I’ve been practicing consumer bankruptcy law.

There is nothing I haven’t seen.

Trying to pay off a deceased spouse’s massive medical costs can lead to bankruptcy for many people, who have little choice but to do so.

To make matters worse, most people do not consult with a bankruptcy lawyer until they have spent all of their assets.

The loss of a spouse is one of the most devastating events in a person’s life.

It is also the worst time to make important financial decisions because of the emotional toll.

You should meet with an attorney who specializes in wills and estates immediately after the death of a spouse.

While I am not a lawyer in this field, I know a number of excellent ones and would be pleased to assist you in finding one in your region.

To determine whether or not the deceased spouse’s estate has to be probated, an estate planning attorney should be consulted.

Meeting with an economic forecaster is the next step in the process of planning for the future of your financial well-being.

My law company offers a free initial consultation to discuss bankruptcy possibilities if there are outstanding obligations.

Despite the fact that the surviving spouse has no legal obligation to pay for the medical costs, debt collectors are masters at guilt-tripping them into doing so.

When you get your life insurance check in the mail, debt collectors know exactly when to call.

The money you receive from a life insurance policy won’t be affected by the debts of your deceased spouse.

“Can you show me the contract where I signed and agreed to be liable for this debt?” should be your first query whenever you’re unsure if you’re liable for your spouse’s debt.

As long as they can’t prove your signature on a guarantee, you won’t be held responsible in Georgia, regardless of what they say.

Is a wife responsible for husband’s credit card debt?

Unless you are a co-signor or the account is a joint one, you are normally not liable for your spouse’s credit card debt. You may also be held responsible for this debt in the event of a divorce or the death of a spouse.

Do I have to pay my deceased husband’s credit card debt?

In the vast majority of cases, the answer to this question is no. The debts of deceased relatives are generally not the responsibility of family members, including spouses. Credit card debts, student loans, vehicle loans, mortgages, and company loans are all included.

Instead, the deceased person’s inheritance would be used to pay off any remaining debts. Because of this, as the spouse of the deceased, you would not be compelled to pay a penny of the obligation on your own. You may not be able to utilize your spouse’s assets to pay off their loans or other debts, though.

If your spouse has passed away, a debt collector may contact you to verify who they should contact regarding debt payments. Typically, the executor of the estate would be responsible for this task. It is possible that your spouse named you as their executor in their will. Alternatively, you could ask the probate court to serve as their executor when they die.

To be an executor, one must inventory the deceased person’s assets, assess their value, notify creditors of their death, and pay any outstanding bills that may have been accrued prior to their demise. To pay off creditors, the executor can liquidate assets if there are no cash resources to do so.

How can I not be responsible for my spouse’s debt?

  • The executor or administrator of the estate, who has the authority to settle the deceased spouse’s debts, may be contacted by a debt collector to locate the spouse of the deceased. Unless you are a cosigner or joint account holder, the debt collector may contact you about the debt, but they may not suggest that you are legally bound to pay it with your own assets. If this is the case, the debt collector may contact you about the debt.
  • As a cosigner or in any other way legally compelled to pay for the financial obligations of your deceased spouse’s estate.
  • A community property state may require you to settle the debt with communal assets, in which case you should seek legal counsel to learn more about your options and responsibilities.
  • Executor or administrator of a deceased person’s estate can be contacted by collection agencies for information about the deceased person’s financial obligations and payments from the estate if you are an executor. In the event that you are legally compelled to pay the debt, collectors cannot imply or declare that you are personally liable for the debt unless there are specific circumstances (such as being a co-signer) that make you legally responsible.
  • In the event that you are not the executor or administrator of the estate, you may desire to provide this information to the debt collector.

Telling a debt collector to cease calling you is within your legal rights. The executor or administrator of a deceased person’s estate, as well as the spouse of the deceased person, are entitled to this power. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from harassing you or any third parties they contact. Our example letters might help you interact with a debt collector if you want them to cease calling or only contact you at specified hours or through an attorney.

Despite your efforts to discourage debt collectors from contacting you, the deceased person’s estate may still be liable to pay for the debt. As with any other creditor, a debt collector has the right to sue the estate.

How do I protect myself from my husband’s debt?

It’s not enough to declare that you’ve divided your finances; you need to show that you’ve done so. As long as you treat assets and accounts as though they’re shared, a court may rule that you should also share debts. Take out loans in one person’s name for a car or other vehicle, and title property in that person’s name, rather than both. Limiting your exposure to your spouse’s creditors so they may only take goods from your part of jointly owned property that belong completely to her is a good idea.

Can you sue your spouse for not paying bills?

If your co-signed obligation is not paid, a creditor has the right to sue you. Although your spouse may be held liable for the debt, creditors have the right to sue even if a court judgment states otherwise.

Can creditors take my wife’s house?

Stressful times for the entire family might arise when a partner goes bankrupt.

Bankruptcy trustees are appointed in the event of your spouse’s bankruptcy and are responsible for acquiring and selling the bankrupt’s assets in order to pay creditors. The family house, which is not listed as a protected asset under the Bankruptcy Act, is one example of this type of property.

In order to protect creditors’ rights and interests, the Bankruptcy Trustee must treat the realization of your spouse’s stake in the home with compassion.

The Trustee will sell the residence if it is wholly owned by you and your spouse.

When one of the joint tenants files for bankruptcy, the joint tenancy ends automatically.

In the future, joint renters will be replaced by tenants in common.

The family home’s part of the bankrupt spouse might be sold by the trustee in bankruptcy after that. The trustee. Any money left over after selling the home (after paying creditors) will be split between the bankrupt and non-bankrupt spouses if they can’t afford to buy out the bankrupt’s portion.

In such a circumstance, the Bankruptcy Trustee is likely to use the following strategy:

  • Don’t deny the non-bankrupt spouse an opportunity to purchase the property’s interest in the non-bankrupt spouse.
  • Invite the non-bankrupt spouse to work with the Trustee to promote and sell the property on agreed terms.
  • Even if the non-bankrupt spouse is unwilling to sell the property, the trustee has the option of petitioning the court to name a “statutory trustee” to sell the property for the benefit of the co-owners’ interests.

Even if one spouse is not insolvent or has participated in any manner to the bankruptcy, the appointment of the statutory Trustee necessitates the sale of the home. The non-bankrupt spouse is generally given time to relocate and find a new home by the court, but the property is almost always sold.

When a bankrupt files for bankruptcy, the Trustee in Bankruptcy has a wide range of options when it comes to selling the property and will usually give the bankrupt a few weeks to find a new residence. Any remaining mortgage debt must be paid in order for the Trustee to sell the property. In order to pay off creditors, the proceeds from the forced sale are utilised.

The rights of the mortgagee (the bank with which you have a mortgage on your house) are unaffected by bankruptcy, and if mortgage payments fall behind, the bank may still proceed with the sale of the property in question. Continuing to make mortgage payments after one spouse goes bankrupt is a good idea if you can afford it.

Bankruptcy might result in the sale of your family home to pay your creditors, so it is crucial to seek legal guidance before filing for bankruptcy.

How long can a debt be collected in GA?

Medical debt, credit card debt, and auto loan debt all have a four-year statute of limitations in Georgia. Any tax obligation you may have to your state has a seven-year statute of limitations; however, you have six years to pay off any mortgage debt you may have.

Be extremely cautious and certain not to make a payment or pledge to settle a debt if the statute of limitations has run out. If you do, the debt collector will be able to take legal action against you because the statute of limitations has been reset.

Can creditors take your home in Georgia?

If a judgment lien is placed on your property, it will remain in effect for seven (7) years, regardless of who owns the property.

Paying down the lien or requesting that the lien be vacated and removed by the court will be necessary if you plan on refinancing or selling your home before its expiration.

It is not impossible to sell or refinance a property even if it has a lien on it, especially if it is your principal residence. Judgment liens, on the other hand, take precedence above mortgage liens for most homeowners.

Because of the lien on your property, you should seek the advice of an attorney if you want to sell your home. You can also seek the advice of a lawyer if you are feeling overwhelmed by debt.