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  • FIRST POST
    • PJCBEL
    • By PJCBEL 16th Jun 17, 9:11 AM
    • 17Posts
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    PJCBEL
    Going bankrupt 1 final question?
    • #1
    • 16th Jun 17, 9:11 AM
    Going bankrupt 1 final question? 16th Jun 17 at 9:11 AM
    I've completed my forms and gathered my fee before I submit one last query came to mind!
    About 9 years ago I took out a joint loan with my then wife, I took all the loan to pay off my gambling debts. About a year later I entered a DMP and I managed to keep my wife out of it as she had not received any of the money and the situation was created by me.i dealt with the company, they did not contact her and I managed the dmp in my name only for 8 years. ( in this time debt has been passed on twice to debt collection agencies) My question is will my bankruptcy affect her house, I have no assets and house in her name? I've read the debt is statute barred as she has had no contact with the creditor for over 6 years just want to make sure I cause my ex no more grief as I've caused enough already
Page 1
    • fatbelly
    • By fatbelly 16th Jun 17, 12:46 PM
    • 11,524 Posts
    • 8,658 Thanks
    fatbelly
    • #2
    • 16th Jun 17, 12:46 PM
    • #2
    • 16th Jun 17, 12:46 PM
    I can't see how your bankruptcy would affect her house unless the OR could show you had a beneficial interest in it, which is unlikely

    The statute barred joint loan would have no bearing on it. Your liability will be cleared by bankruptcy and she would have a complete defence to any claim.
    • PJCBEL
    • By PJCBEL 20th Jun 17, 11:11 AM
    • 17 Posts
    • 1 Thanks
    PJCBEL
    • #3
    • 20th Jun 17, 11:11 AM
    • #3
    • 20th Jun 17, 11:11 AM
    Thanks for your reply fatbelly. I spoke to citizens advice yesterday and they said that my wife could still be chased for the joint loan as I've been making payments there is no statute barred. How would this affect her if I went bankrupt, ie would she have to ruin her credit rating by entering a DMP? She will go mental if credit rating ruined as she's worked hard to correct it after my mistakes. This is a nightmare!
    • fatbelly
    • By fatbelly 20th Jun 17, 12:29 PM
    • 11,524 Posts
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    fatbelly
    • #4
    • 20th Jun 17, 12:29 PM
    • #4
    • 20th Jun 17, 12:29 PM
    They are correct. I missed that in your first post.

    In the case of a joint loan, acknowledgement in writing only binds the person who gave it. But acknowledgement by payment binds both of you.

    So it would not be statute barred (for her) until six years after the final payment (by you).

    She would need to see what crept out of the woodwork and then take advice on it.

    It probably won't affect her credit as the initial default would have been 8(?) years ago and so the entry would have dropped off her files 2 years ago
    • PJCBEL
    • By PJCBEL 20th Jun 17, 9:43 PM
    • 17 Posts
    • 1 Thanks
    PJCBEL
    • #5
    • 20th Jun 17, 9:43 PM
    • #5
    • 20th Jun 17, 9:43 PM
    Thanks again fatbelly. This has indeed been removed from her credit file. So am I right in assuming worst that could happen is she'd be chased for repayment and they would most likely accept a reasonable offer that would not affect her credit rating?
    • HothHan
    • By HothHan 21st Jun 17, 2:34 PM
    • 18 Posts
    • 15 Thanks
    HothHan
    • #6
    • 21st Jun 17, 2:34 PM
    • #6
    • 21st Jun 17, 2:34 PM
    Thanks again fatbelly. This has indeed been removed from her credit file. So am I right in assuming worst that could happen is she'd be chased for repayment and they would most likely accept a reasonable offer that would not affect her credit rating?
    Originally posted by PJCBEL
    The can chase her for it, but the debt as is Statute barred it is currently not enforceable because the time the creditor has to chase payment has passed. Advise her not to make ANY payment no matter how small because this admits acknowledgment of the debt and they can then enforce that debt again, register it back on her credit file, and the 6 year period the creditor has to enforce it starts over!
    • fatbelly
    • By fatbelly 21st Jun 17, 2:43 PM
    • 11,524 Posts
    • 8,658 Thanks
    fatbelly
    • #7
    • 21st Jun 17, 2:43 PM
    • #7
    • 21st Jun 17, 2:43 PM
    Thanks again fatbelly. This has indeed been removed from her credit file. So am I right in assuming worst that could happen is she'd be chased for repayment and they would most likely accept a reasonable offer that would not affect her credit rating?
    Originally posted by PJCBEL
    You are correct.

    It may never happen.
    • PJCBEL
    • By PJCBEL 21st Jun 17, 4:50 PM
    • 17 Posts
    • 1 Thanks
    PJCBEL
    • #8
    • 21st Jun 17, 4:50 PM
    • #8
    • 21st Jun 17, 4:50 PM
    Thanks for replies. Hotham citizens advice have advised me debt is not statute barred as I've been paying it off until very recently. If either debtor acknowledged debt then it's live and they can chase her for it. Having said that I still think me going bankrupt is my only sensible option and there may even be a slight chance they won't even chase her for the debt. Thanks again for taking the time to advise, much appreciated. All the best to everyone with debt problems
    • HothHan
    • By HothHan 21st Jun 17, 5:53 PM
    • 18 Posts
    • 15 Thanks
    HothHan
    • #9
    • 21st Jun 17, 5:53 PM
    • #9
    • 21st Jun 17, 5:53 PM
    Ah I see, I didn't realise that the Statute Barred wouldn't apply to her if you had been paying it.
    If it's a 9 year old debt that has been past through a couple of debt collects then I doubt they will pursue her for it.
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