Legal Question in Credit and Debt Law in Georgia
Spouse's Debt
Am I responsible for my husband's credit card debt and student loan debt. He has been unemployed for six months. I can pay the house payment (in both of our names) and utilities plus my credit card. Could I buy his part of the house from him and he file bankrupcy? He has one more month of savings left before we will not be able to meet his debts.
2 Answers from Attorneys
Re: Spouse's Debt
You are responsible for debts in your name, or in both of your names. You can theoritcally buy his portion of the house, but it may not be of any benefit. The transaction will be scrutinized and you'll be expected to pay for his half of the equity. Then he will have to account for that money in the bankruptcy case. Otherwise, it will look suspicious, the trustee can come after you for half the equity if not paid, and he could potentially lose a discharge. Insider transactions before bankruptcy are generally not a good thing, without getting legal advice first (actual advice, not just general responses like this).
Re: Spouse's Debt
A pre-bankruptcy transfer of real estate can be a major disaster and should not be done without legal advice (if it can be done at all). Depending on your numbers (and we'd have to see them), he might not lose a home in bankruptcy.
You're not liable for his bills unless you co-signed for them.