roddie123

When I met my husband he owned a business.

He had a line of credit on this business that he personally signed for. Meaning he used his personal credit to get this line of credit on his business.

We married.

Several years later he basically lost his business, meaning he emptied the place out, closed the door and walked away. He had been leasing the building.

He owed $125,000.00 to the bank on a line of credit on this business.

When he lost the business he also stopped making the payments on this $125,000.00 line of credit.

This was 2-3/4 years ago. So far we've received no statments on this line of credit. We've received daily since then calls from collection agencies which go unanswered.

My husband seems to think that because this bank that held this line of credit has changed names several times he thinks that they have lost the paperwork showing where my husband signed for this line of credit initially, otherwise he says they would have sued him for the money by now.

My question to you is this.

This was a line of credit he had "before" we married.

If/when he has to file bankruptcy (there is no way we have $125,000) does MY NAME HAVE TO BE ON THE BANKRUPCTY PAPERS??? Meaning will I also have to file bankrupcy?

My name was never on the business at all........ in any form.

Thanks in advance for all of your input.

827Aug

From my nightmare experience, I would say the answer is "no". Several attorneys (including two bankruptcy attorneys) advised my husband to file for bankruptcy and me to wait.

Is your husband getting any statements from the bank? Was it a secured loan? Or a signature loan only? Among other bills I was left with a medical bill over $200K in 2009. I pay each medical provider $25.00 monthly. I get no threatening collection calls from any of them--absolutely hear nothing out of them. My attorney told me to do that with all of the unsecured creditors. It works great! Perhaps your husband could do that.

If possible, you may want to speak to a CPA or attorney about your issue though.

gonefishin

It is very unlikely creditors will go after you personally. However if the creditors get a judgement they may put a lien on your home. Speak to an attorney protect your credit.
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GreenEyes

I work in a BK office, and no your name does not have to be on it. Even if both your names were, say, on the house, still only one of you could file.

DietColaGirl

I filed for bankruptcy earlier this year and my husband's name did not appear on any paperwork. He filed more than 10 years ago and it's finally come off his record. At least one of us has good credit!

Jeff74

Your husband is wrong...no one forgot about the loan!. I can't be certain based on your message but it sound like the bank may have sold off the loan to a collection agency and is now out of the picture. collection agencies buy loans from creditors for a discount and then attempt to collect.

I am not a bankruptcy attorney and laws do vary from state to state, but you and your husband are separate people (even though married) and in this case I would argue that your husband filing for bankruptcy should not apply to you. With that said, things become a little trickier if a loan is secured by jointly owned assets.

What state are you in? The statute of limitations for debt collections vary among states.
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