Hold Harmless & Garnishing Wages
June 21st, 2005 by Questions
Part (1) – hold harmless. I got divorced and there was joint debt of about $28,000. She has a “hold harmless” indemnity clause on the debt against me in the divorce agreement. I haven’t made a payment on the debt in 3 or so years and plan on going bankrupt.
1) Will the “hold harmless” prevent me from going bankrupt on it?
Part (2). Creditors call once and awhile looking for me but she hasn’t had to deal with creditors for that debt in over a year as to her. She still has a mortgage at the bank where those debts were. When creditors called a year ago she argued that she’s not responsible for the debt as I took it over based on the divorce agreement. I expect when I go bankrupt things will heat up again and they will start calling for her. She is a single mom with 2 boys and makes maybe $500-$600 week.
2. Is it a real possibility that they will garnishee her wages to go after that debt? Garnishee rules are harsh – $350 month max income?!!? Yet, she won’t pay. If she was taken to court would a judge see her limited income as a single mom and not allow a garnishee?
I worried for her and the kids and wonder if I will be ever able to go bankrupt based on the fact they can come after her?