What happens if I can't pay the collection agencies calling me?

Question

I recently found out that my husband's x-wife bought a bunch of stuff in my husband's name when he was deployed in the middle east. She never paid on any of it. Now, 7 years later, I am married to him (he is in Iraq again) and the collection agencies are calling me. I paid off the first one that called but now I dont have any money left for the rest of them. What happens if I cant pay them? Can they sue me since it is in my husband's name (remember my husband is not in the country)? Can they take my car other possesions (which are in my name, not my husbands)? What is the worst that can happen and how long do I have before it happens? HELP!

Answer 1

I am basing this on the assumption that your husband is in the Armed Services:

A longstanding federal law strictly limits the ability of a credit company and other lenders to foreclose against active-duty service members. The law, the Servicemembers Civil Relief Act, protects all active-duty military families from foreclosures, evictions and other financial consequences of military service. The Supreme Court has ruled that its provisions must "be liberally construed to protect those who have been obliged to drop their own affairs to take up the burdens of the nation."

This means that since he is not home to defend himself or make arrangements, they can do nothing against him. The relief act forbids default judgments against soldiers serving overseas and protects their spouses as well. Talk to JAG for more help and advice.

And don't pay them anything! An old debt can expire and be written off after seven years, but if you make ANY arrangements or payments on the debt the seven years starts over again. In other words, it becomes a brand-new debt. Tell them when they call that your husband is a deployed service member and you are invoking the Servicemembers Civil Relief Act. Ask them to stop calling. They cannot call you if you ask them not to.

My best wishes to you and your husband. Good luck in this difficult time.

Answer 2

I like Wartz's answer.............in addition to that though, before you (or your husband) pays them anything, make sure she had the legal authority to buy this stuff in his name in the first place. If they were already divorced at the time (and even if they weren't), he may have civil legal rights he can excercise. If it truly ends up being his debt to pay, then offer to settle with either the original debt holder or the collection agency. I've heard of several instances (from reliable collection sources) where debts have been forgiven by as much as 40% by the companies. Many would rather consider a lump sum partial payment over the possibility (real or implied) that bankruptcy may be the other alternative--in which they may end up getting nothing at all.

Just be aware, however, that if a company "forgives" or "writes off" part or all of a debt, that amount can be considered taxable income to your husband come tax time.

Answer 3

If these debts are 7 years old, they are probably past the Statute of Limitations (SOL). Check for your state: http://www.fair-debt-collection.com/SOL-by-State.html

Don't talk to these collectors on the phone or admit to owning the debt. Send a letter, certified, return receipt, requesting validation of the debt including any contract or other document proving the debt is your husbands. This should also include the date the debt became delinquent (date reporting period starts) and the date of last activity (date the SOL clock starts).

If it's beyond the SOL, you can tell them to pound sand. Just sent them a cease and desist letter. If they do try to sue, use the SOL as an affirmative defense.

You might want to check his credit report and dispute any item over the 7 year reporting period. Some collection agencies try to re-age items.

Answer 4

They can't sue you and can't take your stuff. Period. If you are in a community property state, they can have the sheriff levy on non-exempt community property after successfully suing your husband. Tell them that your husband is out of the country in the service and to communicate only by mail and not call you at your home number any more unless you really want to talk to them.

Answer 5

you signed the settlement, ya could pay;; do you already know that Bally's gets maximum of their revenue in keeping with this?? & have been for some years..I signed up with them for a ridiculously cheap because of the fact @ the time I worked interior the comparable "strip mall" & they have been offering savings;; the cost became into $24/three hundred and sixty 5 days & each time I went of their with my "little identity", they could say i became into no longer a member, attempting to get me to affix @ a ridiculously intense cost;; ended up spending greater time with the boys at the back of the counter than interior the middle itself,, ridiculous;; yet they're nevertheless getting the greater youthful ones, huh?? even however you signed the settlement, ya nevertheless owe the money, yet i does not even step foot in there lower back if I have been you;; they DO run a foul business enterprise, & it rather is not basically from my adventure, they also have a foul rep & various human beings i be attentive to had "billing problems" with them, lower back, for some years...