I live in the State of Missouri, and a few days ago I received a Summons in the State of KS for a Visa card that I had with my ex-husband. It seems he stopped paying on this card in 06, and the plaintiff which is a national banking corporation issued this card when we were married.

When we divorced, our divorce property settlement stated that we were each responsible for half of the balance at that time, which was around $4000. I paid $2000 directly to the bank who issued this card, and stupidly did not close the account at that time. When I ran a credit report a few years later, I learned that he had ran this card up to the amount of $7600! Needless to say, I contacted Visa directly and closed the account, but there was still the outstanding balance of $7600. I feel that because I paid my portion of the card when we divorced, I shouldn't have to pay my ex's debt as well.

To make a long story short, I now have this summons to appear on court on December 22, 2008 for this mess, and attached to the summons is proof of the debt, including my original application for the Visa card.

I spoke to an attorney today, and was advised that I should appear in court and tell the judge my side of this case. My fear is this: I was involved in a very severe auto accident in July of this year, and was hurt pretty bad. I broke both my right and left ankles, and although my right one is healed, the left one is not getting any better. Again, long story short, I have a lawsuit pending with a Personal Injury Attorney here in Missouri, and I am afraid to appear in court in December for fear that they will place a judgement against me either way, and try to take the settlement that is pending from my auto injury accident. I have lost everything because of this accident... car, job... everything including my ability to work until this is resolved, which could be March to July of 2009. It upsets me to no end to think that after all of the issues I have had to deal with due to my injuries, now this money might go towards a debt that I consider isn't mine, although legally it is, because my name was still on this Visa card.

What should I do? Attend this hearing and let them know that while they are busy attaching my bank account, that to just hang onto that idea, because pretty soon I may be getting a settlement that they can take as well? Please help! I really have no where else to turn...

I am SO sorry, what a stressful situation and right before the holidays too!

I would try and locate some sort of legal aid office for help. If you Google your State and legal aid you may find some resources. I would think that given your situation someone should be able to help. Also, if you are collecting disability, they cannot garnish that.

Anyhow, I would highly recommend trying to find some sort of free legal help. Try visiting Civil Summons for Credit Card Debt? Don't Make These Mistakes! « Credit Card Debt Lawsuit Help this blog as there are many resources listed in the link box. I would try debtlawnetwork.com for an attorney as well.

Good luck to you!

Thank you so much mlr08... the info you provided is already a relief, I am terrified of the outcome of a judgement against me.

I am on hold as we speak to see if I qualify for legal assistance for this case. Again, Thank You!!

I'm glad I was able to help! I'll keep my fingers crossed that you can get some legal assistance, I would think you have a good case. At the very least, a good lawyer should be able to drag the debt lawsuit out so that perhaps the settlement would come through before you had to go to court?

Let us know the outcome and hang in there!

From what I understand of the law, a divorce decree is not binding on creditors. This means that the fact that you adhered to the decree and paid your half, has no bearing on them. You were a co-signer for the card and are responsible for the balance on it.

You can sue your ex for the balance, but that's a separate action.

So, its my opinion that you will lose the suit and be forced to pay the $7600. I do not believe they can attach the settlement directly, so you want it deposited somewhere where they will have a hard time getting at it.

Sorry, I couldn't be more optimistic.

Not going to like this, but the divorce settlement does not stop you from owing them the full amount, they may try to collect the full amount from either of you.

If they force you to pay, then you can go back to family court and sue your ex for the money back.

Mlr08: Spoke with legal aid in KS, and they are unable to help me because they are not receiving funding for this type of case. MO Legal Aid cannot help because the case is being brought in KS. :-(

Thanks to all who answered. After getting two free consultations with two separate attorneys in my area, they have given the same advice that Scott and Fr_Chuck have...

The divorce decree is not binding on creditors. Both attorneys advised that I should by all means go to court anyway, and explain my situation to the judge. I did pay 1/2 of the balance at the time of the divorce, but was unable to completely close the account because the ex would not or could not come up with his half. I was not receiving any of the statements associated with this account, and believe it or not, I was so overwhelmed with the stress of the divorce itself that I neglected to stop him from continuing to charge on the card at that time.

When denied credit in Feb of 04, I did call Visa directly and inquired how much this balance was, and because it had increased so much, and being the primary cardholder, I instructed them to disallow any further charges on this account. My hands have been tied in all of this though, because I could not force the ex to repay his portion of the debt at any time. I was never sent one statement or collection letter on this account whatsoever, until I received this Summons to appear in court.

I have contacted Visa once again, and Monday I am going to pick up the statement which contains the receipt for the payment I made in August of 03. I made no further charges on this card.

I have also spoken with a bankruptcy attorney as well. She stated that if she has knowledge of the pending settlement, it will be attached and used to repay all old creditors.

So basically what I am left with is the reality that I am going to have a judgement against me in this matter, and there is nothing I can do to stop it other than plead my case to the judge. One attorney even suggested that I call the attorney for the plaintiff, and explain all of this to him, but I am scared of communicating with him verbally at all. My boyfriend had suggested that I call the attorney for the plaintiff, and try to make some kind of payment arrangement to avoid the judgement, but from prior posts it is my understanding that it is way past that point.

Scott is correct. The only way I can protect the settlement at this point is to #1: Not mention it in the hearing, (luckily my injuries are not as apparent as they were even a month ago) and #2: Immediately deposit the settlement into my parents bank account. I am even afraid to put a car in my name.

Big lesson learned. I will never get a joint credit card again, even if someday I can file bankruptcy and rebuild my credit. Highly upsetting to say the least, but less upsetting when I know what to expect. Makes it easier if that makes sense.

What a mess...

You can try to offer a settlement right up to the hearing. If you can offer a lump sum settlement, you may be able to get them to accept 50-75% of the balance.

Thanks Scott... going to pick up my receipt of the payment I made in Aug of 03 when the bank opens on Monday morning, then call the attorney for the plaintiff.

I will explain my side, then offer to set up a payment plan. Unfortunately, I cannot offer a lump sum settlement, because of my accident I am still not able to work, and going through physical therapy (which I will not disclose to this attorney).

Will update this thread after my conversation with him... I am praying it goes well.

Thank you all for your replies :-)

Quote:

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Originally Posted by tm1973

Unfortunately, I cannot offer a lump sum settlement,

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If you are expecting a settlement of your own, maybe you can borrow the money to offer a lump sum until you get yours.

Um... thanks for the advice, but that will not happen. It is hard enough to swallow having to make arrangements to pay a bill I did not create, but to hand over my injury settlement for this bill as well? NEVER!

I have had to learn to walk again as a result of this accident, and granted, didn't have much to begin with, but it was something.

I have gone through a lot due to my accident... not to mention my family and friends who have gone through it at my side. I could be facing a surgery this winter to repair damage in my left foot/ankle, which will set back my recovery to ground zero. This has ruined the last six months of my life, and possibly will take at least until July of 09 to settle, let alone recovering mentally and emotionally from all of this.

After the surgery, well there may be a permanent partial disability. To have to take out a loan from the attorney against my pending settlement is not advisable per the injury attorney. I had already inquired about this to cover the out of pocket medical expenses incurred so far. He says many clients end up owing him money in the end because of the very high interest rate that is charged, and his advice was to not take any loan on the pending settlement for any reason.

I know you were just trying to help, but my medical expenses are already at an estimated $15,000. This is not counting the cost of the MRI scheduled in January of 09 and the cost of the additional surgery - both of which may need to be estimated because they are so costly, then figured into the settlement amount in the end along with future doctor visits and physical therapy.

Again, I know you were just trying to help and offer a solution, and I know my response is long... but it does offer some insight into my situation which is just not good.

To anyone who is following this thread:

On Friday I spoke with the main credit department of the bank which is trying to sue me, and explained my situation to the representative. She actually listened to this mess, and was sympathetic to my situation. She pulled a credit card statement on the account from July and August of 03, (my divorce was in July of 03) and instructed me to go to the nearest bank branch, show proof of identity, and they would release this to me.

After contacting 2 more attorneys in my area and receiving yet 2 more free consultations, I was advised to contact the plaintiff's attorney and explain the entire situation to him as well. Maybe he wouldn't care or be willing to listen, but hey its worth a shot. I'm thinking what do I have to lose at this point right?

Today I picked up the credit card statement from August of 03, and there is a record of me paying Visa not the $2000 that I had originally posted, but $3000! I knew it was a large amount, but this is good for me.

I then called the attorney for the plaintiff in this case. Surprisingly, he actually wanted to hear what I had to say, and was very polite to me. He thanked me for the call, and the information I provided. (On a side note to all of this, not only did my ex-husband totally screw me over in this matter, he has also opened other credit in my name... identity theft and FRAUD... but that is another story.)

I was able to provide this attorney with another possible address that my ex and his new wife may live at. He has been unable to locate my ex throughout all of this, and was very appreciative of the new info. This was found on a recently run credit report by me, and it is an address I have never lived at before or heard of.

I did mention to the attorney that I would be willing to set up a payment arrangement at this time to avoid the judgement and upcoming court date, which he actually declined for now. He wants to try to locate the ex, get him involved in this mess and go from there. He also stated instead of me just showing up for court on Dec 22nd, to call him the Thursday before and ask him if he has been able to locate the ex. He said he may try to move the court date to a later date, and with my offer of a payment arrangement (small but he didn't care), and possibly issue a new summons to only the ex!! :-)

It really helped to contact the attorney for the plaintiff. I was terrified to do so, but helped me immensely.

Thank you all who have posted and given your advice and answers to me, your responses have been invaluable.

Will update this thread with new info as it becomes available, so others may learn from my situation.

P.S. NO mention was made by me to the plaintiff's attorney regarding my auto accident, and never will be. Was offered some advice from other attorneys on how to protect the pending settlement... and will do so when the time is right.

Again, a big THANK YOU!! To everyone who has offered advice... you have saved me from sleepless nights and possibly a ruined Christmas as well... :-)

Great news and good luck. But one caution. Make sure, if there is a court hearing that you show up. Do NOT take the plaintiff's attorney at their word that they have gotten a postponement or whatever. Keep in touch with the court and if the hearing is scheduled, be there. Otherwise they will get a default judgement.

Quote:

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Originally Posted by ScottGem

Great news and good luck. But one caution. Make sure, if there is a court hearing that you show up. Do NOT take the plaintiff's attorney at their word that they have gotten a postponement or whatever. Keep in touch with the court and if the hearing is scheduled, be there. otherwise they will get a default judgement.

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Thank you Scott! Good advice!! Will definitely keep in touch with the court and go if the hearing is scheduled. THANK YOU! You're absolutely right, doesn't pay not to be too careful when dealing with something like this, and it was partially because I was so naïve in the first place that this mess got started.

:)

Don't know why I bothered going to court on this at all. Default judgement taken against me for the full amount. Would have been the case had I shown up or not. How stupid. Good news is that they did not find out about my pending lawsuit/settlement over my auto injury but I'm mad that I even went at all. Anyway, good luck to anyone else facing this, you'll need it.

That doesn't make sense. If the plaintiff was able to prove their case, then yes a judgement would be ahnded down against you. But a "default" judgement is only awarded when the defendant doesn't show up.

Yes it might seem like a waste of time since you lost anyhow, but you couldn't be sure that the plaintiff would have the documentation to prove their case. It was a calculated risk but a risk worth taking. If you don't show up you automatically lose. If you do, you may still lose but you went down fighting.