Legal Question in Credit and Debt Law in New York
Collection of Debt
A friend's husband ran up a credit card bill which he could not pay (he is unable to work). A collection agency is now attempting to collect the debt and has spoken to his wife about resolving the matter. My questions are:
1) could this debt affect the wife's credit history (she was not a co-holder of the card and her name does not appear anywhere on the account)?
2) What would be the best course of action for her to take to resolve the husband's debt with the collection agency? Could she set the terms of payment, or must she accept the terms the collection agency demands?
3) Is there any possible legal action the collection agency could take against the wife to collect the debt?
Note - no payments have been made to the collection agency since this the first time the wife has become aware of the debt.
2 Answers from Attorneys
Re: Collection of Debt
I am sorry the husband is without work. It must be especially difficult on him. Regarding the wife, this is not her debt and cannot be collected from her or reported as her debt. On the plus side, she is in an excellant position to negotiate with the creditor! Be tough and be aggressive. 50% should be your top offer. An attorney can help in these negotiations. You are welcome to a consultation at no fee at my offices at 42 West 44th St., NY,NY. Please call for an appointment first. (646) 591-5786
Re: Collection of Debt
They cannot collect the debt from the wife UNLESS she agrees to be responsible for the payment of her husbands debt (which agreement must be in writing). She should not agree to be responsible even if she makes payments for her husband. (Actually, any funds paid should be paid by her husband even if the funds originate from the wife). Her credit should not be affected. She can negotiate for her husband and the simple fact that she does this should NOT affect her credit or make her liable for the payments.
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