“Dear Steve,

When my wife divorced her last husband they had a large amount of debt. The house they lived in went to short-sale so the income that was supposed to pay off her debt didnt come in. She was making good payments up until the time she lost her job. She then went on disability and has been unable to work since. All of her debt is now in collections. She has offered what little money she can but they refuse to accept it… they want more. She has no income other than mine.

Our home is in my name only and we own only one car. If she gets sued by the creditors, what can they take from her? What options does she with no income other than disability and my income to avoid getting sued?

Matthew”

The Answer

Dear Matthew,

Why put her through all this stress and dealing with one debt after another, lawsuits and nasty collectors? She needs to go bankrupt individually and close the door on that old debt. Eliminating that stress will help her to better deal with her medical condition and reduce the chance of residual depression over the financial problem.

Click here to find a local bankruptcy attorney and the both of you should go see them. Saying the creditors can’t go after you doesn’t resolve the problem. Bankruptcy does.

Big Hug!

Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form.