joint debt with ex partner who won't pay up

Roseribbons · 20 April 2015 at 7:32PM

Hi

This may be long!
In 2008 I bought a house with an ex partner. Shortly after buying the house together things went horribly wrong in our relationship, and by 2010 after over a year of arguing about who would stay in the house I left - my ex refused to leave despite not being able to pay the mortgage on his own, I could have and had a much more stable job. It was either walk away or go insane and continue to be abused by my ex. By the time I finally left the house was on the market. When I left my ex negotiated with our mortgage provider the Halifax to pay interest only until the house was sold. However, this didn't last long as my ex lost his job (again) and the mortgage fell into serious arrears. Luckily the house sold (but at a substantial loss) just before repossession proceedings were about to take place.
Upon sale of the house my ex and I signed an agreement with the Halifax to repay the mortgage shortfall of £30K. However, my ex soon started stalling tactics with Drydens Fairfax solicitors, as I knew he would. I agreed with them to pay £50 a month. My ex has paid NOTHING towards this substantial debt despite having his own business now. Drydens have clearly written him off as difficult and now just hassle me for the debt.
It will take me a lifetime to pay this debt off on my own. I know I am severally liable for the whole amount but it is a large sum of money so I don't see why I should when my ex should be made to pay his fair share too. I cannot and will not pay anymore than £50 a month as I do not earn great money and I have other big debts like student loans to repay too.
I am happily married now with a baby daughter and my husband wants to negotiate a full and final settlement off to pay off this debt when he gets some money from the sale of his deceased aunt's house. However, I don't see why my husband should use his inheritance to pay off my scumbag of an ex's debt. I am quite prepared to pay my fair share and I think my ex should too.
Are there any tactics i can use to force Drydens into forcing my ex to start paying up?

Tixy · 20 April 2015 at 8:08PM

Hi and welcome to the forum

Realistically after this time the only way they are likely to agressively go after him is if either he becomes the easier prospect to chase (e.g. if you declare bankruptcy or enter an insolvency arrangement) or if they are getting nothing at all from you (in which case they'd potentially take legal action aganst you both).
Very unfair for you but not an uncommon situation to be in.

If you can only afford to pay £50 a month and that is unlikely to change any time soon then given the size of the debt perhaps it may be worth taking some advice and considering bankruptcy? (assuming you have no other assets). At least that way you would be free from the debt in 3 years.

Roseribbons · 20 April 2015 at 8:31PM

Hi
Thank you for replying
I cannot consider bankruptcy because I jointly own a house with my husband, however I didn't contribute financially to the purchase of the house but I am still deemed as having an interest in the property by virtue of being married. My ex is still living in a rented house (he moved into it after the house was sold) and this is where his business is now registered.
So in other words, you think that offering a reduced lump sum (which they said they would consider in a previous letter) would be my only option of putting this nightmare behind me once and for all and chalking it up to a hard lesson learned?

andyfromotley · 20 April 2015 at 8:42PM

Hi Rose,

Its a hard lesson indeed isn't it? It must seem terribly unfair too.

However you are where you are, and realistically if they aren't going to get anything of him they can and will pursue you for the whole of the debt as they are now.

As i see it you have two options,

1. Continue with the £50 per month and they will keep on hassling you forever no doubt.
2. Take your husbands kind offer. They have indicated that they are willing to take an offer which is a good sign. They will have bought this debt for less than the £30k (unless they are an in house debt collection agency) so you may well end up getting a substantial discount. Check out the full and final settlement thread to get a feel for what you should offer.

Although it sticks in the throat i would go with the second option. Swallow that bitter pill and move on with my life without them pestering me. You can also forget completely about your ex too!

It may be worth just running your options past someone like National Debtline just to check that you have considered everything.

https://www.nationaldebtline.org

hope this helps

Roseribbons · 20 April 2015 at 9:09PM

Hi
Thank you for replying
I cannot consider bankruptcy because I jointly own a house with my husband, however I didn't contribute financially to the purchase of the house but I am still deemed as having an interest in the property by virtue of being married. My ex is still living in a rented house (he moved into it after the house was sold) and this is where his business is now registered.
So in other words, you think that offering a reduced lump sum (which they said they would consider in a previous letter) would be my only option of putting this nightmare behind me once and for all and chalking it up to a hard lesson learned?

Roseribbons · 20 April 2015 at 9:22PM

Hi Andyfromotley

Yes, it is a bitter pill indeed, especially when it needn't have happened - due to his sheer bloody mindedness and desperation to stop me from leaving him he refused to allow me to take on the house and move out. He couldn't pay the mortgage and was in unstable employment whereas I was in stable employment and could carry on paying the mortgage. Furthermore my ex would be demanding his share of any equity if there were any. It's grossly unfair
I have sought legal advice and debt advice on numerous occasions and have been told time and time again the same thing - there is nothing I can do as I can't go bankrupt. I have already offered Drydens £5K which they have rejected and have not given me any indication of what they would consider as a F and F settlement. When my husband receives his inheritance I guess we will have to offer a bit more. Thanks for your pointer for checking out the F and F settlement threads

. Fingers crossed Drydens will accept something reasonable.

pathtofreedom · 20 April 2015 at 9:38PM

I don't know if it would work but could you take him to small claims court for his share?

immoral_angeluk · 20 April 2015 at 10:33PM

pathtofreedom wrote: »

I don't know if it would work but could you take him to small claims court for his share?

If he has no money and no assets it would be a waste of time (and money) for the OP. Yes she'd get a CCJ against him but the likelyhood of getting anything back is slim to none.

OP, have you gotten any advice about an IVA? If bankruptcy is a no go then an IVA would be your only formal route available.

sourcrates · 20 April 2015 at 10:34PM

Hi,
Another solution for you could be a "lump sum IVA" (individual volunteery arrangement).
This is similar to a regular IVA, but you make a lump sum offer to your creditor, and if accepted, the IVA ends, more or less, there an then.
Your home is not at risk, and you have full legal protection from any further action.

Creditors would be more prone to accepting a lower offer, because the next step in the process, as they see it, is Bankrupcy, (not that you would have to go there hopefully).

Now I am not sure if you can do this with just the one creditor, but I think it's worth a phone call, so would suggest ringing National Debtline and enquiring about it.

Remember "lump sum IVA" not regular IVA.

Roseribbons · 21 April 2015 at 11:00AM

immoral_angeluk wrote: »

If he has no money and no assets it would be a waste of time (and money) for the OP. Yes she'd get a CCJ against him but the likelyhood of getting anything back is slim to none.

OP, have you gotten any advice about an IVA? If bankruptcy is a no go then an IVA would be your only formal route available.

Yes, I have had debt advice but chose not to go down IVA route or DMP at the time. I will offer Drydens a reduced lump sum when my husband receives his inheritance (when his aunt's house sells, hopefully soon). If they want most of the debt then I will have to seek debt advice again. I haven't heard of a lump sum IVA so I will definitely look into getting more advice about that.
Thanks all for taking the time to offer advice.

joint debt with ex partner who won't pay up

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