Legal Question in Credit and Debt Law in California

Need Help w/American Express Debt & Court Case!!!!

I received court documents, from a California lawyer, regarding my husband's American Express card account debt (closed and I am not on the account) of $63K. There is no court date set yet. Based on the below information and your experience during this economic downturn, what do you think the judge will make us pay?

We have lost all property to Countrywide Mortgage. We have no joint assets left and just enough to pay for our bills. My husband lives in VA (for the last 1.5 years) and has been continuing his work in the real estate field. He has no regular salary/income and makes just enough to pay for food and gas. He's on the verge of living out of his car.

I have a 401K ($100K) and a small amount of stocks. I support 2 kids (one is in junior college). I have $45K in credit card debts (due to our arm loan payments, etc.) that I pay on monthly.


Asked on 8/26/08, 3:17 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: Need Help w/American Express Debt & Court Case!!!!

Your question really shouldn't be "what do you think the judge will make us pay", because the judge, unless assert a valid legal defense to American Express' lawsuit, will enter judgment in their favor for not only the amount due on the card, but accrued interest, attorneys fees and costs. The question really should be what can American Express collect from you with that judgment. Once they have a judgment they can make your life a living hell, including attaching wages (regardless of other debt, raising kids, etc...). You need to meet with a local attorney, and determine if you are even obligated to this debt. Even though you say you were not on the account, if you were married at the time the debt was incurred, and/or are still married, you probably have exposure. I'd strongly suggesting buying an hour of an attorneys time to discuss what to do - you may even need to consider bankruptcy as a possibility.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Read more
Answered on 8/27/08, 12:56 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California