Legal Question in Credit and Debt Law in Georgia

First of all, having a joint acount means that when and if the creditor wins, they will get your money. So you should not have one. Unless you co-signed, they cannot get your separate income and assets.

Although she can file bankruptcy without you, your income affects if she qualifies.

Asking for proof of a debt does NOT stop a suit, nor does asking if they bought a debt, nor how much they paid. In fact the last question is irrelevant. If you use the internet instead of a lawyer, you may file something so frivolous that the court tacks on additional damages for your frivolous response.

And you do NOT send letters to the court or the other side.

At this point she sees a lawyer to evaluate bankruptcy (and also to see if she has any real defenses or not). She will do far worse if you try to be the lawyer.

You are not liable for your wife's debts in most cases even if it was incurred after you married (there are some exceptions, assuming the debt was not for "necessaries"). However, you are good to go here since the debt was incurred prior to marriage.

Get your wife's name off of your bank account NOW. If you have a joint bank account, if the creditor gets a judgment, they will be able to freeze the account and take the funds in there. It will be no defense that it is your money and it will be next to impossible to get the funds back once they are taken.

If your wife wants a separate bank account, either get this debt resolved now or have your wife open an online or other out of state bank account, account at a credit union or at a small community bank 25-50 miles from your home.

I don't know what other assets your wife has. Are they in the US? If they are in Puerto Rico, they are probably safe. No creditor is going to want to get the judgment transferred to Puerto Rico so it could be enforced there. If your wife has property in the US or Georgia, what does she have? If she owns anything free and clear (land or a car) it can be seized and sold.

Telling me or the other attorneys that you have had no communication about the debt for 3 years tells us nothing. The key point is when the last payment on the debt was made. If it was made 6 years before the lawsuit was filed or more then your wife may have a statute of limitations defense to the lawsuit if the debt was incurred in Georgia. If it was incurred somewhere else, was it more than 6 years ago?

The time for writing a letter and demanding the kinds of proof you ask for is over. Once a lawsuit is filed, your wife has 30 days from the day she received the complaint to file what is called an answer. There are no forms. Your wife generally should answer if: (1) she has a valid defense, like the statute of limitations; (2) the wrong party has been named (as in the case of identity theft); (3) the debt was already paid; or (4) the amount claimed is wrong (as in the creditor has failed to give your wife credit for amounts that she paid). If this is for a credit card debt, the creditor is allowed to collect interest, costs and attorneys fees so the mere fact that the debt is bigger doesn't mean that the amount claimed is wrong.

If you have a valid defense, then get to an attorney immediately. It will be well worth it to have an attorney draft a proper answer for your wife.

If there is no valid defense to the debt, then you and your wife have to decide whether it will be worthwhile to spend money litigating this. Sure, you can get proof of the debt once the answer is filed. You do this by means of discovery. You cannot represent your wife. Discovery consists of asking written questions (called interrogatories), requesting documents and requests for admission of certain facts. Again, there are no forms for this and you either create your own or go to the law library and see if there is a form book which helps. However, if the debt is really hers, the creditor is going to get a judgment against your wife. They are also going to get a judgment if you do nothing. The difference is that you succeed in delaying the inevitable. You also run the risk of irritating the creditor by making them do work and thus sabotaging any chance that you may have for settling the debt for less than is owed.

If your wife has other debts besides this one, she may want to get a consult with a bankruptcy attorney. She can file without you but a bankruptcy attorney will have to review all of the assets and debts. Bankruptcy is not without its own consequences and should not be undertaken lightly. Many attorneys give free bankruptcy consults and just because your wife gets a consult does not mean that she must file. While it is better if she files bankruptcy before judgment, it can be done at any time, even after judgment.

This debt is not all that big. Many creditors will settle for between 50% and 80% of the debt, depending on the creditor. Some creditors will allow you to make 1-12 payments and some will not. Who is the lawsuit by? Frederick Hanna? Zwicker? Someone else? Who are they representing?

If you would like to discuss the specifics of this case in confidence, I give free email consults. I also resolve debts for a reasonable fee if you have the funds. Please contact me at [email protected] if interested.