Credit Debt Cures

My common law spouse incured an $84,000 debt with CMHC prior to our relationship, am I liable?

My commonlaw spouse of 8 years in-cured a debt of $84,000 when a mortgage was foreclosed on a property in his name. This debt occured prior to our relationship. Currently the debt is in the hands of ARO Collections agency. My concern is that my property could be seized since we are common law? My home is worth $275,000 and I own it clean and clear. I am going to see both a credit councellor and trustee this upcoming week but could sure use some advice today.

Public Comments

1. I wished I knew what state you were in. I have had more than one couple that thought they were "married" by "common law" only to find out their state repealed it or no longer recognizes it...you need to check that first.
2. i am not sue about the legal status -- please come on back and let us know what happens.
3. If your name was not on the previous loan, you're not responsible. Also, do not put his name on your current home. They can put a lien on your current home if his name is on it. Matter of fact, do not have anything joint with him including credit cards, loans etc... They will go after you if his name is on it. He's on his own. However, it will give you a headache because while he's dealing with his problems, he may not be happy and concentrate on you as he should.
4. No. Any debt before you is his alone. Your property was yours before he entered the picture so they can't seize that. All they can grab is community property or assets you have in both names.
5. there may be no common law marriage in your state. Even if there is, you may not meet the requirements. Concerning the debt, the spouse is generally not responsible for the debts the other bring TO the marriage. Although, this law can vary from state to state. If the debt at foreclosure was $84,000, it should be reduced by the amount the property was sold for after for closure. The mortgage must prove it made a good faith effort to receive the fair market value of the property. . .no "brother-in-law" deals. If the property sold for more than $84,000 your partner is owed money. Good luck. Let us know what happens.
6. It sounds like you don't have much to worry about...the debt was incurred before your relationship, that fact you own your house and he's not on it, your not actually married, I would check with your states law on "common law marriages" most don't even recognize them, and even so this is not a debt you helped incur so your not liable for it. As long as his name is not on the deed or mortgage to your home they can not seize your property.
7. Your signature is not on his $84000 loan so you are not responsible. His name is not on your property so your property is safe.