Legal Question in Credit and Debt Law in Michigan

Re: spouse credit debt

You have an argument if you never signed onto the credit card, so you don't have to pay it. BUT, realize that at some level as long as you are married it will have a negative impact upon you. She can investigate bankruptcy, but in any event, it sounds like she is uncollectible. They will still try to collect the debt, but if she investigates bankruptcy, that may solve the problem. Contact a bankruptcy lawyer, because she can file bankruptcy on her own.

Re: spouse credit debt

If the credit card was in your wife's name alone, and, in fact, as you imply, she is being sued individually, and you are not named in the lawsuit, your personal credit rating will not be affected whatsoever. If you do not respond to the summons and complaint, the creditor will likely get a default judgment and can proceed with garnishing bank accounts with her name on them, joint or individual, and garnish any wages (if she is disabled, she is probably not working, and has no wages). You probably want to take steps to protect your bank accounts. It might help if you contact the attorney for the creditor and explain her hardship and the fact that she is uncollectible. If you can afford it, you might want to negotiate a monthly payment with the attorney.

You should be aware that Michigan has recently become a judgment lien state which means the creditor can attempt to place a lien on your house, but if you and your wife own the house as a married couple, they cannot touch it so long as it remains in both of your names and you stay maried. However, if you predecease your wife while the judgment still exists (they last for ten years), and she then sells the house, the creditor will get the judgment amount plus judgment interest (either the interest rate when she defaulted or approximately 13%).

Good luck to you both.