Legal Question in Credit and Debt Law in Georgia
Collections, judgements, and marriage.
My wife is about to be sued by a collection agency because of a derogatory credit card from several years ago (pre-marriage). Her name is not on our house or either of our vehicles. Her name is, however, on our joint bank account. If/when she loses and a judgment is rendered against her, will this collection agency have any power to place a lien on my home or vehicles? Should I remove her name from our account? Thanks.
2 Answers from Attorneys
Re: Collections, judgements, and marriage.
The creditor may garnish joint accounts and her property. Moving things out of her name now may be attacked as a fraudulent conveyance and lead to you being sued. The obvious best solution is to make a deal with the collector for to pay the debt, avoid a lawsuit, and honor her debts and agreements.
Re: Collections, judgements, and marriage.
The creditor may garnish joint accounts (and anything else she owns can be seized). Her paycheck can also be garnisheed. A transfer now may subject you to suit for a fraudulent conveyance. With a joint account, I would stop putting any money in it and open separate accounts.
That still doesn't solve the problem. If she owes the money, she should try to settle BEFORE suit, or, if the debt is large, consider other options now such as bankruptcy.
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