Debt Collectors Distort Community Property Law. Debt collectors claim you are personally liable for your spouse, or ex-spouse’s, debts. California community property law is complicated.
Can a debt collector garnish my spouse’s wages?
The creditor can garnish your wages, even if privately you and your spouse agreed that the loan was just one spouse’s obligation. So, the short answer is that your spouse typically won’t be affected if your wages are garnished. If you need to stop wage garnishment, bankruptcy can help.
Can collections come after spouse?
In community property states, you are not responsible for most of your spouse’s debt incurred before marriage. However, the IRS says debt taken on by either spouse after the wedding is automatically a shared debt. Creditors can go after a couple’s joint assets to pay an individual’s debt.
Can a collection agency still try to sue you?
Even if a collection agency can no longer sue you, they can still make efforts to collect the debt from you. That includes calling you, sending letters, or reporting the debt to a credit bureau if the debt is within the credit reporting time limit.
What should I do if a creditor or debt collector Sue Me?
Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium. Learn more about your tenant and debt collection rights. When you respond or “answer” the lawsuit, the debt collector will have to prove to the court that the debt is valid and that you owe the debt.
Can a debt collector garnish your husband’s wages?
Ask a lawyer – it’s free! They cannot garnish your husband’s wages for your debt unless he is a cosignor. If you don’t pay the creditor, the debt collection agency can sue you, get a judgment and garnish your wages (when you go back to work) or bank accounts or put a lien on your assets…
What happens if a debt collector lies to you?
If a debt collector lies to you, that’s also a violation of the FDCPA. For example, they may say you owe more or less than you owe, claim to be an attorney when they are not or threaten to sue you when they have no legal right to do so.
