Judgement against my wife: what are my options?

**zagboodle** · 06-15-2007, 06:24 PM

My wife is disabled and unable to work outside the home. In 2004, she was hospitalized in Oregon, and our share of the bill was around $900. We were struggling under debts that kept mounting, since I was the only breadwinner and we weren't even making enough money to pay our monthly bills, let alone service debts. In 2006, things had gotten so bad, my wife and I separated. She moved in with her son (still in Oregon), and I moved back to Alabama to live with my parents and work to pay off our debts. I have tried to work with the debt collection agency, but they took the matter to court (in Oregon) and got a judgement against my wife (but not against me). My wife has no income and no assets apart from a car (I send her money each month for groceries, as well as help her son with rent). The original $900 has now balooned to $2100 including court costs. I made them an offer of $1200 (I will have to borrow even more money to pay this), but the lowest they'll go is $1900, which I simply can't pay.

My question is, what legal recourse do they have since they have a judgement against my wife but not against me? What, realistically, would happen if I told them, $1200 is all I can do, take it or leave it? How badly is my wife's credit going to be messed up, and will paying them fix it? Can they try to take away my wife's car? Can they go back to court and get another judgement against me? What are my options? We already declared bankruptcy before all this started, so that's not an option.

Any help you could provide me would be greatly appreciated!

**Nada.Leona** · 06-15-2007, 07:51 PM

This really is a question for someone with some legal background, and I cannot think of any such individual participating on our site. We can help and give you suggestions on how to cut back on everything in your life and how to save the money, but these questions really should be directed towards some form of legal council.

**starsapphire** · 06-15-2007, 08:10 PM

Try asking over at www dot creditboards dot com. There's some really knowledgeable folks over there concerning this kind of stuff.

**Jaded** · 06-15-2007, 09:43 PM

A judgment is good for 10 years, and stays on your credit record that long. If at anytime within those 10 years, she becomes able to pay, they can come back after her for it. Other than that, and it ruining your credit for 10 years, it's just a piece of paper. It can't be held against you, and if you were legally separated at the time of the judgment.

**Sari** · 07-13-2007, 09:40 AM

On a related note, can they take you to jail if there's a judgement against you but you don't/can't pay?

**Jayne** · 07-13-2007, 09:46 AM

I don't think they can put you in jail for this, just ruin your credit...for not making child support payments they can put you in jail

**sixfreds** · 07-13-2007, 03:10 PM

If there is a court order to pay it (not just a judgement) and it doesn't get paid they can put you in jail for not following a court order, you can work it out with the court how much you pay monthly or weekly but if it is omnly against your wife they can't come after you.
Your wife can go to court and ask them about making a payment plan that she can follow (and if she doesn't have income the payments will be real low).
But they can't come after you if the judgement is against your wife.

Eileen

**FrugalMomof3** · 07-13-2007, 06:55 PM

First off, I would like to applaud you for wanting to help our your wife even though your separated but now on to your questions... If it is a court order YES they can put HER in jail but not you, if it is a lien it will ruin HER credit for a period of 10 years but I am unsure as to why they did not accept your offer of $1200 since it is giving them a profit but I would have your WIFE call and ask about a payment plan, maybe then you can help her make those payments BUT make sure you get it in writing and if she can call and ask about a settlement amount that would be great as well.

I hope all turns out well

**accountantbyday** · 07-15-2007, 01:34 PM

I worked for a collection law firm as my last job. I was not a collector, but I learned the ropes.

Oregon is not a community property state, so the debt is hers and hers alone. The judgment can lead to liens and garnishments against her property/assets (and yes, bank accounts) if it goes too long without payment.

A judgment is just a piece of paper, for now, but can lead to other things later. If I recall correctly, a judgment is just verification that the debt is owed, but is not an order to pay. If desired, the awarded party can take it back to court to get a lien or garnishment in place.

Best bet, tell the firm that you would like to set up a PPA (payment arrangement) for an affordable amount per month. If you have limited income, ask them to work with you with regard to interest--they can freeze it so the balance doesn't continue to grow from it. Make it clear that they won't get anything until you receive the agreement in writing and it matches the terms you arranged on the phone. You can set a PPA for a settled amount as well....see if you can get them to settle between the $1200 you offered and the $1900 they want, then set up a PPA for that amount. Most often, it's a contingency thing--you can have the PPA for the settled amount if you pay on time EVERY month, or if you put $XXX amount down as a good faith payment, or if you pay it off by a set date. Take advantage of this as much as you can, borrow if you have to from someone more forgiving.

ETA-- I just reread your post. They could put a lien on the car, but this is rare as cars aren't worth much when it comes down to it and are easily destroyed or made valueless. It will be on her credit, not much you can do about that, but it's easily fixed when the judgment is released/satisfied.