How to deal with creditors when credit cards were used by wife w/ mental illness?

Any legal advice would be very much appreciated. My wife has mental illness (major depression, OCD & PTSD) which causes her to be very impulsive about spending and lying. She is receiving intensive treatment now, but when she was untreated she ran up credit card debt in my name to the tune of about $25,000. She had used my SS# to apply for and receive cards and then maxed them out. I used the cards somewhat as well, under the pretense that she had saved enough money before I met her to pay them off (she didn't).

Needless to say, the bill collectors are after me. There's no way we can afford to pay them, as we have a 9-month old daughter and one income. Her mentall illness is well documented by physicians. Is there any way to dispute the charges on these grounds? If not, what options are there? Please keep in mind that we can't afford $700+ a month to go through a credit counseling place. Thanks.

No...you can look and look and find no real concern on their part. However a good parasite doesn't kill it's host, and so they are somewhat flexible as long as they're getting the max possible. Unless you're pulling down six figures, there is no fiscal way you can pay off these loans (assuming all will be at 18% or higher APR after a few missed or under the limit payments become justification for raising these rates.)

You can snowball payments (look up snowballing high interest debts) and save thousands and pay these debts off in 10 years instaed of 30, but the fact is you will be burning a mountain of money. Screen your calls, and avoid any leaking of your contact info to any creditor. As a couple, lean to live on what you have in the bank, and avoid ALL credit offers for the next several years under your names.

You're staying with your wife, so the debt is yours to keep. I suggest you put your money in the bank, change your phone numbers and keep them very private, and never ever pay or neogtiate with a third party after primary debtors charge off. Just prior to charge off's from primary debtors (the ones you have a signed contract with) you can make one or two attempts to contact them (do not do it from your new phone number by the way, but through the mail), and make a settlement offer to each one.

Do not offer to settle one of these debts for more than 30% of the original principal, because that's all they can sell them for. Bogus charges, fees, and acruing interest will have been added to the debts.

It is likely they'lll respond with something like half of what they're demanding. Even primary debtors may not call your place of work...if they do get a fax number and fax them a Cease and Desist letter (a demand letter you can google up). Any third party must honor a cease and desist order immediately. Once a debt charges off...forget, shut them down with Cease and Desist orders, and wait for the dept to go to the next third party and repeat the process if they contact you. The primary debtor has already collected a write-off and is for all intents and purposes paid, and you have no contract with them. Secondary debtors are the aggressive collectors, because they have no other leg to stand on besides harrassment.

There is no debtor's prison. The card companies should have been sensitive to what was happening since they are so fond of the math, and it's obvious this is an irrational amount of credit to offer in your case....and so, that much credit should not have been extended.

You'll not see the luxary of a high limit card again for a long long time, so consider picking a favorite (most reaosnable) debtor, and paying just that card down.

You can settle with third party debtors, and find many examples of settlement offers, but that's only if you need to purchase a house of something that absolutely requires a loan. Otherwise, I suggest you look into groups like I3 Solutions, which can legitimately make credit reporting companies ban/remove debts where their 'owners' have violated any of 200 rules they _must_ follow to the letter. Included in that are many things that very few debt holders follow correctly. That sort of service can run well over $1000 to have done, but in your case might elliminate as much as 50% of your accounts completely out of your file....forever.

They have their nasty little rules to charge us fees and rob us blind once we get over our heads (by design) and so let them eat their own crow by hiring groups able to make them follow the FDCPA rules they must follow!!!

Have you been in contact with the card companies,they usually want to help in cases like this.Try it you may be surprised.

Can you return things that was brought using the credit card?

Get a lawyer. They will deal with the debt collectors and see if the CC companies will make a deal with u.

Been there, done that, it sucks. Get a second mortgage if you own a home and destroy all cards. Subscribe to a monitoring service so you can tell when new cards are applied for.

Signed: A Veteran of the Bi-Polar wars.

Credit card companies don't care what your excuse is. They just want their money.
Your option is bankruptcy.

Unless the lending bank knew beforehand, I don't think you have any grounds to dispute the debt; and even then, I'm not sure you have much leverage. I would talk to them and see about reducing interest and extending payment - I do not think you can avoid it alltogether tho'.

I'm an attorney - but this is not really my area of expertise.

First, CUT UP all the credit cards - and cancel the accounts. Then, if you can't afford credit counseling, contact your local Legal Aid Society for help.

I don't know of USA laws , here in UK .if you cant pay or you don't want to.you send them packing ..and that will be the end of that ..
You need a more believable story ..a child can see through that nonsense ..
a good story would be you wasn't living at the family home when all this was going on ..and ask the card company to put a claim in to their insurance company for the loss as the customer using the cards was ill ,diminished responsibility's..

Since the credit card companies are the creditors, I wouldn't expect much sympathy--they are already out almost as much cash as you stand to be, since they've paid off the merchants who actually sold stuff to your wife. Hopefully this makes sense and you can see where they're coming from.

Those merchants are the ones to whom you should be looking for a sympathetic ear and they are obviously empowered to take back the merchandise that was purchased and issue refunds/credits. If you don't have any luck there, it sounds like bankruptcy may be your only option.

Maybe you can call the credit card companies and talk to someone in management. Tell whoever you speak to about the problems, and that you can provide documentation of the diagnosis. Ask if there is anything they could do to help you with the problem since she forged your information and now you are responsible. You might be surprised to learn they may help you by lowering the interest rate or stopping altogether if you can make arrangements to make monthly payments. Since you used the cards as well, this may be the best you can hope for.

sad case- the credit card people will not write off these debts be sure of that !

But you should be able to pay a reasonable amount off each month (if only a dollar) to clear the debt- theres no point credit companies taking you to court if you cant pay it.
See a citizens advice person or someone who deals with these problems.
good luck x

Get her doctor to write a note indicating that your wife does have this condition, what it makes her do and that she is getting treatment. Send that note to your creditors, which would stand as validation that your explanations are real issues, and not lies you're making up so you don't have to pay. Then work out a reasonable, affordable payment plan with each creditor. If the money you have coming in is already stretched to the limit, you may have to hire a nanny from a reputable agency and get another job. Its just temporary until you can do better. Cut up the cards so your wife can't use those anymore, and maybe send letters and a photo to all the bank managers in your area informing them to contact you whenever your wife enters their bank requesting credit or withdrawls of any kind. Would even be better to go in and speak with those bankers.

Hope that helped.

Wow, I am so sorry. I hope I am wrong, but i am pretty sure there is nothing you can about it except ride it out. Even if you could use your wife's condition to negotiate, I think you'd have to "prove" it, which would cost even more money. I do know there are a lot of legitimate credit counselors out there who can wheel and deal with the credit card companies and bring the balance/payment down to something affordable. Don't give up hope, maybe someone here will have a better answer. Best of luck to you, and I hope your wife gets help.

You allowed your wife to make purchases with your card. Credit agencies note that and will throw that on your face. Since you made that contract, you must pay. But there are credit counseling agencies that are minimal payment attached to your payment plan around to help you resolve this financial problem. That's your 1st option. The 2nd is an attorney that will charge you and arm and a leg. The 3rd is bankruptcy.

You're in deep doo-doo.

I would think you may be able to negotiate something with the creditors, but because you used the cards also, that might make it very difficult. Because this is such a large amount, you really should talk to an attorney, or at least talk to the various banks you owe money to about consolidation.

Consult a lawyer! not yahoo answers

Get medical records or a Doctors certificate saying how sick she is and talk to the Company that has the money owed to them. Do all corespondence by document, email, letters and record any names pf people you talk to by phone.
If that doesn't work get legal advice.

I know the feeling,but the creditors cannot bother you to much.tell them that you can pay something like $5.00 amonth or week .they can't say no cuz atlease you are putting something down.If they give you a hard time speak to his or hers suppervisor.

Ding Dang it might be time to get a second job and ditch your wife y'all! I don't think theres much you can do because you could have easily canceled the card etc. I don't think you'd get very far in court. Sorry.

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