QUESTION
What happens if a judgment is filed against me by an individual?
Asked on Dec 30th, 2013 on Civil Litigation - South Carolina
More details to this question:
My husband, who I am separated from, borrowed money from someone who is suing both of us for the amount owed. I had no part in the borrowing of the money. Against my wishes, my husband wrote a check to this person for the full amount owed at the time it was borrowed to start a small business, even though that amount was not in our joint account. When the business failed and my husband couldn't pay the money back, his lender forced me to sign a document saying he would pay it back by threatening to take the bad check to the bank. Now he has hired a lawyer and is threatening to sue both of us for the amount borrowed plus thousands of dollars in interest. I am now a single mom who is working to support three kids. I am on food stamps and medicaid. Obviously, I can't take on my husband's debt. What happens if a judgement is filed against me on behalf of this individual and I can't pay it? Can my check be garnished? Can my property be taken? Can my income tax refund be taken?
1 ANSWER
If you do not oppose the claim against you, a judgment will be entered against you. If you do not pay the judgment, the judgment creditor can do all of the things you mentioned to collect on the judgment. Although you would seem to have a claim against your husband, I assume from what you've written that he has no money with which to pay it. If you have no defense to the lawsuit, you may have to consider filing for bankruptcy to discharge this debt and allow you to start fresh, but this should be a last resort.
However, it is not clear to me that you have any liability. You say you signed a document saying that "HE" would pay it back. If that is all the document said, that your husband would pay back his debt, it would not impose any liability on you. However, there might be some liability if you are deemed to have allowed your husband to write a bad check on your joint account.
Answered on Dec 30th, 2013 at 12:40 PM