My husband and I had bought a second home in which we lived in and rented the first home. The first home is in my name only except the home equity line which we both signed for. After moving into our new home I took out cash advances to pay for repairs in our rental approx $25,000. I then bought all new furniture for our new home. We have had marital problems and he only stays at the new home when I am working to watch our children. Since this and the loss of my tenant I am thinking about claiming Ch 7. I make approx $60,000 a year and now have approx 60,000 in debt (not inc car or home). My questions are these: 1. Will my husbands credit be affected if he continues to pay on the home equity line? 2. Will he be liable for my debt if he is not a cosigner on any of my cards? 3. In the state of Florida can my furniture be taken from me that I purchased and use in the home which my children and I live? 4. Are cash advances treated any different as far as debt. 5. Lastly if I short sell my home (which is only in my name) but continue to pay the equity line(which is in both names) until it is sold and the loan is written as satisfied, will that effect his credit if the Equity loan on which he signed for also is paid up-to-date? I do not have any collateral, my original home since the market crashed is not worth anything. I do not want to affect his credit because the spending was all my fault and done after he moved out. The loss of the tenant greatly affected me.
1) Your spouse's credit will be affected if you share joint accounts, or if your spouse is an authorized user on an account that you fall behind on in payments.
2) Regarding spousal debt, see Is My Spouse Liable for My Credit Card Debt?.
3) I am reluctant to answer your furniture question because it is highly dependent on Florida's replevin laws, of which I am not well-versed. I recommend you take this question to a Florida attorney experienced in consumer rights law.
4) Cash advance from a payday loan storefront or a cash advance from a credit card are both unsecured debt, and receive equal treatment under the law, generally speaking. If you are referring to a so-called payday loan, see Payday Loans in Florida to learn more about the rights of Florida consumers. However, if you are referring to a Home Equity Line of Credit (HELOC) or a home equity loan, those are secured by the property.
5) If the HELOC/home equity loan/second mortgage are paid in full, there will be no negative impact on either borrower's credit score. However, read Information on consequences of default on a second mortgage if you decide to take that route.
I hope this information helps you Find. Learn & Save.