Legal Question in Credit and Debt Law in Indiana

What can I expect?

Before I was married I leased a vehicle. I lost my job due to pregnancy complications and had to return the vehicle to the bank. I am now married and our home and vehicles we now own are in both my husband and my names. I received notice yesterday that the bank was going to sue me for the balance. I am currently unemployed and we are barely able to get by the way it is. What is the worst that I can expect to happen? Can they (the bank) do anything as far as our home and vehicles that we have now are concerned since the leased vehicle was just in my name? Thank you in advance. Stressed out in Indiana


Asked on 1/03/03, 11:15 am

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: What can I expect?

Hi. The law in Indiana provides that entirities property such as your home and current vehicles are exempt if they are titled as husband and wife.

Ther is a recent case in Michigan involving the IRS that may give the IRS the right to attach joint property for the tax debt of just one spouse, but I do not think it will apply to other creditors. You should be what we call judgement proof since there isn't any way to collect from you-you do need to be careful about joint bank accounts since a creditor can freeze such an account and require you to prove that the funds are those of your husband since he is the only earner. The best advice might be to offer a lump sum to them while explaining that you are unemployed and own no attachable assets-you may need to hire counsel to negotiate for you.

Keep in mind someday youmay need to have clean credit or go back to work so resolving this may be the best course. Good luck!

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Answered on 1/03/03, 12:34 pm


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