Hello,
My ex and I had a court order where he was to be responsible for the balance of a line of credit and was to indemnify and save me harmless of the debt. I already paid my share of the debt. He claimed bankruptcy and the bank does not support the order, therefore making me responsible (I co-signed).
I wrote to the collection agency working on behalf of the bank and made an offer. The debt is around $8400.00 but I could only offer $2000.00 to settle. The collection agency said the bank would need more information in order to consider this amount. They want to know where I work and what my income is. The collection agency said the bank would most likely accept this amount if I proved hardship. I have my own business but it isn't doing well at all and my income tax return will show this but I was told I should not give out this kind of information to a collection agency. I'm worried they will come after me again. They want this information before a settlement offer is agreed upon.
Should I give them the information or should I take the risk that they will take legal action?
And because I have my own business what can they do?
Please help!! I only have 48 hrs. to let them know my decision.
Thanks

Without the information they aren't going to accept your offer. For all they know you're making $250,000 a year and trying to get out from under this debt.

I see both sides of this but if you are making an offer that is legit you will have to share your financial info with them.

You made them an offer. They can take it or leave it, plain and simple. If they choose the latter, then if they pursue any continued attempts to collect from you, deny any existence of and responsibility for this debt. Be prepared to produce the court order stipulating that your ex is responsible for the balance and that you are indemnified and held harmless. Incidentally, the bank does not have the option not to "support" any bankruptcy judgment your ex may have been granted. If your ex petitioned for bankruptcy and it was granted, then the bank has no recourse with which to attempt to continue to collect from your ex. Now they can report the delinquency to credit bureaus and unfortunately your name will probably be attached to that as well. But that's the least of your worries.

You made them an offer. They can take it or leave it, plain and simple. If they choose the latter, then if they pursue any continued attempts to collect from you, deny any existence of and responsibility for this debt. Be prepared to produce the court order stipulating that your ex is responsible for the balance and that you are indemnified and held harmless. Incidentally, the bank does not have the option not to "support" any bankruptcy judgment your ex may have been granted. If your ex petitioned for bankruptcy and it was granted, then the bank has no recourse with which to attempt to continue to collect from your ex. Now they can report the delinquency to credit bureaus and unfortunately your name will probably be attached to that as well. But that's the least of your worries.




Where do you get this legal advice? Once again - please quote your source.

OP has already stated there's a Court Order which covers this debt. Now you are advising her to deny the debt and further, deny the existence of the debt?

The creditor has no obligation to follow the Court's directive. If both parties are on the loan/credit card the creditor has every legal right to pursue both OR EITHER if the parties.

If OP cannot settle, then OP pays it and sues her "ex" for his share of the debt as well as asking that he be held in contempt.

Again - the creditor has absolutely no responsibility to follow the Court's directive.

Again - the creditor has absolutely no responsibility to follow the Court's directive. They do if a bankruptcy petition has been granted! This much I know as I filed for bankruptcy years ago myself. If a bankruptcy is in place, then the creditor has no recourse by which to collect the debt. If it's a secured debt then of course they can repossess the collateral securing it (unless the debt is reaffirmed, which is common in bankruptcy proceedings when the petitioner wishes to retain a real asset for which there's a lien) but, other than that, the creditor is basically SOL.

They do if a bankruptcy petition has been granted! This much I know as I filed for bankruptcy years ago myself. If a bankruptcy is in place, then the creditor has no recourse by which to collect the debt. If it's a secured debt then of course they can repossess the collateral securing it (unless the debt is reaffirmed, which is common in bankruptcy proceedings when the petitioner wishes to retain a real asset for which there's a lien) but, other than that, the creditor is basically SOL.



He "claimed" Bankruptcy is the exact wording. I see no mention that he actually FILED in Bankruptcy or was ADJUDICATED Bankrupt.

Divorce Court's decree has no effect on joint debts - it's nice if a couple can agree to split or one make all the payments; however, the creditor has absolutely no duty to respect that agreement or any Court Order. Divorce Court cannot issue an Order that one of the parties NOT be held responsible for an existing joint debt - "Be prepared to produce the court order stipulating that your ex is responsible for the balance and that you are indemnified and held harmless" is 100% incorrect advice and could cost this OP time and money - and a good credit score.

If you have information that a divorce decree can change the terms and conditions of a loan, please post it.

OP would have to pay and then sue her husband for the debt. If he is, in fact, adjudicated bankrupt and listed the debt (which I do not read), then she is totally responsible for the debt.

This is how it works.

... The collection agency said the bank would need more information in order to consider this amount. They want to know where I work and what my income is. The collection agency said the bank would most likely accept this amount if I proved hardship. ...
Should I give them the information or should I take the risk that they will take legal action?
...

I would given them a copy of your 1090, but not the attachments.

I see that you are self-employed. I was going to say not to give them identifying info. On your employer, because, you should realize, the collection agency is interested in knowing how to garnish your pay, should they sue you.

So don't give them any information regarding your bank accounts, etc. They are not being honest when they tell you the bank will consider your "hardship".

The only thing they have a legitimate interest in knowing is your realistic ability to pay.

Actually, he did list the debt in his bankruptcy. I found out about his bankruptcy through the collection agency. They told me I am solely responsible now.
Thanks for the replies. It really helps.
Love this forum!

I forgot to mention. The collection agency was suppose to call me 48 hrs. later and hasn't called. Was expecting the call yesterday at 4:00. I don't know what to make of it. I'm confused. Should I call them? What do you think?
Again thanks!