[webmonkee]

All, I have tried researching this for OH and have searched the forums as well, so as not to waste your time, but I cannot find an answer.

My wife is named in a lawsuit for an old debt which we know is valid. She does not want to pay it because when she had a previous payment arrangement that was supposed to stop all interest, the interest continued and so she quit paying.

We cannot afford to pay the entire amount, about $2400, but we could make payments on it at this point. However, again, my wife does not want to pay. Only she is named in the lawsuit, so, my question is, if she remains stubborn on this:
1) can they garnish MY wages for this debt.
2) can they place a lien against our home? (She is not on the mortgage but IS on the title)
3) can they seize MY bank accounts (all of our accounts are separate)

Finally, if I can convince her to pay, is it even worth contacting the 3rd party collections agency's lawyer, or are they most likely just waiting for a judgement now? And, if I do contact them, is it worth trying to negotiate a lower amount?

Thank you for any insight you can provide!

[CaptainForest]

1) NO

2) Yes, but only after they get a judgement against her.

3) NO, since they are not her bank accounts. I assume she has her own?

4) Any deal you make with them (e.g. no more accruing interest, get it in writing!! ). Did your wife get it in writing the first time? I am guessing no, because if she did, you wouldn't be on here posting!

[webmonkee]

OK, Thanks Captain. No, first agreement was over the phone. I don't think she's going to pay, so I guess our move will be to pay off the lien when I get my bonus next year. Thanks again for the rapid response!

[ScottGem]

First, if you did not get the original agreement in writing then it doesn't exist without some proof.

Second, while its possible for them to file a lien against your home its unlikely. Most judges will not grant a lien against primary residences for unsecured debt.

Third, I would make a stab at negotiating a settlement with them.

[CaptainForest]

I agree with Scott.

Try to negotiate something with them.

However, this time, get it in writing!

[webmonkee]

Excellent. I will try to work something out with them tomorrow. Thank you very much for the expert advice!

[Fr_Chuck]

As you may well know many collection firms are well known at getting you to agree to a settlement and then getting that money and then not honoring the agreement since it was not in writing. This is very common, and is talked about on many of the finicial shows such as Clark Howard all the time.

And I will agree with Capt on this