Posted on: 22nd Dec, 2006 07:45 pm
My husband's business isn't doing well and he has fallen behind on the business bills and personal credit cards. The creditors tell me that I will have to pay the business bills as we are married. Is this true?
Hi Demmie,
I don't think you are responsible for the payments just because you are the spouse. Marriage does not give the creditor the right to ask the spouse for payments.
Even when two people get married, each spouse can borrow money in his/her name and the creditor has the right to collect payments from the person who borrowed the money. Only if the spouse is a cosigner on the debt, the lender can demand it from her.
Thanks.
I don't think you are responsible for the payments just because you are the spouse. Marriage does not give the creditor the right to ask the spouse for payments.
Even when two people get married, each spouse can borrow money in his/her name and the creditor has the right to collect payments from the person who borrowed the money. Only if the spouse is a cosigner on the debt, the lender can demand it from her.
Thanks.
you need not pay off the loan. How can the creditor ask you for the payments?
Hi Demmie,
In situations where both spouses undergo divorce, the spouse borrowing the money may request the court to order the other spouse to take over the liability of the borrowing spouse's loans and bills.
However, if both spouses take out money or sign a credit agreement with a credit card company, both of them will be liable to pay down the debt.
Now, if one spouse has unstable job, or a risky business or is likely to default on the debt, the other one can help him repay the debt.
But if the spouse operating the business signs on a business loan, then the non-signing spouse has no liability to pay off debts.
In your situation, I feel that you should talk to your creditors for some more time, so that you can arrange for the payments.
Hope you get through this problem soon.
God bless you.
Samantha
In situations where both spouses undergo divorce, the spouse borrowing the money may request the court to order the other spouse to take over the liability of the borrowing spouse's loans and bills.
However, if both spouses take out money or sign a credit agreement with a credit card company, both of them will be liable to pay down the debt.
Now, if one spouse has unstable job, or a risky business or is likely to default on the debt, the other one can help him repay the debt.
But if the spouse operating the business signs on a business loan, then the non-signing spouse has no liability to pay off debts.
In your situation, I feel that you should talk to your creditors for some more time, so that you can arrange for the payments.
Hope you get through this problem soon.
God bless you.
Samantha
