Hi, I have a question regarding some credit issues my husband has... About 2 years ago my husband lost his job. He stopped making payment on all his accounts (really unresponsible, I know). He had about 7 credit cards and a personal loan which he just stopped paying. For about a year after he stopped paying these bills he recieved calls all day from crditors and many letters in the mail. My husband has never spoke to any of these creditors, he has just simply ignored the whole situation. The phone calls got so bad that I even started telling some of his crditors that he no longer lives here. Gradulally the calls stopped coming and so did the letters in the mail. Now 2 years later he gets 3 calls a day and one letter a week from different creditors (which is nothing compared to what he has gotten in the past) I looked up his credit report and some of the account say "written off as a loss" and one even says "cannot locate the individual". My question is...what is ever going to become of these accounts if he never pays them, which is what he intends to do? Will they ever be removed from his credit report? Is he legally going to have to pay them off oneday? By now the debt is way bigger then it ever was becasue all the fees of month after month of not paying.(even if he now wanted to start paying them off, he wouldnt know where to start since most of them went to other collecting agencies and they dont even contact him anymore) My credit is pretty good. One day I want to buy a home, but i am affraid his negative credit will unable us from getting a mortgage or even renting a house. There is no explenation for his credit problems other then him being unresponsible. Any advise would be greatly appreciated.
future? The negatives on his reports are 7 years. There is much help here navigate the uncharted waters ahead. Its just a matter of wanting to correct the past so you both can move forward. A simple list of debts gets you started.Keep a note book or journal to mark your progress and notes for proof of timeline and whats said.Recording your phone calls a must where its legal. Good luck
I have the same problem, Pa, my wife's credit is awful. I never include her on my credit and I don't allow her to put me on any of her's. The last connection was when I co-signed for an auto loan 10 years ago. When my wife's creditors were at their peek calling they would ask me, are you Mr? I always hung up without responding. Never give them anything. If you do share one of his delinquent credit lines you may consider paying it off, research PFD - Pay For Delete. Tbose lines will stay for at least 7 years but they often stay longer without intervention. He doesn't "have" to pay them but eventually a) they could come after his assets if any or b) he'll want credit and he'll have to come to them to resolve. But if you're handling the big credit stuff his incentive is nill. If you go for mortgage on your own they may request the spouse sign some kind of waiver acknowledging they are giving up their marital interest in the home (my wife did) you'd need to make a will to ensure he retain the house if something happens to you.
The first thing you need to find out is what the SOL (Statute of Limitations) to collect is in your state. There are two different things at work here. First, the SOL will tell you if they can legally collect. Although the SOL may have run out, they can still ATTEMPT to collect. But if they sue (which they must do before going after wages and bank acccounts) he would have to go to court to raise the defense that it's past the SOL, and the suit would be dismissed. As far as reporting goes, it can be reported for up to seven years from the delinquency. However, the companies will try to reage it if they can get away with it.
There is a huge underlying problem here; one you acknowledge being aware of in your husband's lack of financial responsiblity. I am positive this creates more problems than letters and calls from debt collectors. This must be impacting your marriage and day to day relationship. Somehow the root cause of your husband's actions must be found and addressed. Otherwise, this situation will happen all over again. You may want to sit down with a financial professional to review your full situation. Or, you need to take full control of finances; if your credit is "good", then you must have the capability to handle things properly. Communication, and teamwork in setting goals financially is a must for any marriage. Talk about this in earnest with your husband, and discuss calmy, but honestly, any impact on your relationship. You two need to come together somehow.
I was thinking the same thing, Bizwiz, but I thought for now I'd concentrate on the issue of the SOL. But disagreements over money and finances are the number one cause of divorce. You and your husband do need to come to grips with this situation. He can't just ignore things he doesn't want to deal with. I suspect this applies to more than just finances.
Thankyou to everyone for all of the advise. My husband and I are pretty young. I feel we have a wonderful relationship. I think the reason his financial situation has not caused any problems in our relationship is because so far we have not really had to make any large financial decisions together. Plus since he doesnt pay his bills, he has his whole paycheck to spend on us and what we need, so for now it seems like he has everything under control . My credit is good and all of our finances are completely seperate. I come from a family who is very well off, so I have never had money troubles of my own. You all are completly right..he needs to get this under control and since I am his wife I guess it is kind of my problem too. I'm just kind of upset because I'm affraid that some of my life goals, such as owning my own home, are never going to happen because of my husband. I am seriously going to consider speaking to some kind of financial advisor to get a hold of this issue. Thanks again
That's what I mean. Right now you feel like it's not a problem, and you feel good because he's spending the money on things you want. But if you're going to get a house, things have to change. Not only that, once you have the house there is upkeep and maintenance. He can't just decide not to pay bills. While it doesn't seem like a problem now, it is indicative of some much deeper problems that may not surface for a while.
This is probably the best step you can take, you need to see the whole picture, and what it means for the future. A house, kids, major purchases are just around the corner for both of you. Looking at the whole picture will help you with the current debts. A true professional can look at details of the Statute of Limitations, as Hedwig suggested, to tell you what you must do now, or not do. Take solice in the fact this happened now, not years in the future when you're trying to buy your dream home. It may seem "not a problem now" that hubby is spending the full paycheck, even on you, but you need to plan for the future. Saving money, reducing debt are items you need to manage now for a better life together.
