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    • lavinia21
    • By lavinia21 17th Jul 17, 12:48 PM
    • 273Posts
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    lavinia21
    Mortgage and mental health
    • #1
    • 17th Jul 17, 12:48 PM
    Mortgage and mental health 17th Jul 17 at 12:48 PM
    Hi all looking for a bit of advice

    Long story short my husband has been struggling with depression and anxiety badly for the past 3 years. He hasn't worked much in this time and I have supported him financially where possible. He currently has about £40,000 worth of debt from loans and credit card. He's not working at the moment and is really scared he doesn't feel he can pay his debts and is worried if worse come to worse he will have to declare himself bankrupt. We have a joint mortgage which he has asked to sign over into my name just in case things go belly up. Do you think this is possible and if he goes bankrupt with us being married will they still chase because we're married.


    He doesn't want to add the debt to the mortgage.

    Any advice is great thanks
    Positivity is the key there is a reason why life happens. Find your rainbow and ride it.
Page 1
    • pinkshoes
    • By pinkshoes 17th Jul 17, 12:58 PM
    • 15,009 Posts
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    pinkshoes
    • #2
    • 17th Jul 17, 12:58 PM
    • #2
    • 17th Jul 17, 12:58 PM
    Hi all looking for a bit of advice

    Long story short my husband has been struggling with depression and anxiety badly for the past 3 years. He hasn't worked much in this time and I have supported him financially where possible. He currently has about £40,000 worth of debt from loans and credit card. He's not working at the moment and is really scared he doesn't feel he can pay his debts and is worried if worse come to worse he will have to declare himself bankrupt. We have a joint mortgage which he has asked to sign over into my name just in case things go belly up. Do you think this is possible and if he goes bankrupt with us being married will they still chase because we're married.


    He doesn't want to add the debt to the mortgage.

    Any advice is great thanks
    Originally posted by lavinia21
    How much is the mortgage and how much do you earn? He can only put the mortgage in your name if the lender deems you able to afford it.

    You would then need to put the deeds in your name only, but I am pretty sure in bankruptcy this would be seen as a deliberate deprivation of assets, so would be overturned.

    If you own the property as tenants in common they can only take his half of the house, which is what my cousin and her husband did in the same situation.

    My cousin then had to cash in her pension to buy his share out.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
    • TBagpuss
    • By TBagpuss 17th Jul 17, 3:25 PM
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    TBagpuss
    • #3
    • 17th Jul 17, 3:25 PM
    • #3
    • 17th Jul 17, 3:25 PM
    If he transfers the house to you at less than full market value (i.e. if you don't pay him 50% of the equity) then this would be a transfer at an under value which could potentially be reversed if he then went bankrupt.

    I think this is true if any bankruptcy takes place within 3 years of the transfer, on the basis that the transfer is not a genuine one but an attempt to prevent the creditors getting the money they are entitled to.

    Normally, if he were to be made bankrupt then you would be offered the opportunity to buy his share of the house from the trustee in bankruptcy.

    How have the debts built up? Are they still increasing?

    I would suggest that he (or both of you) talk to stepchange (https://www.stepchange.org/) and perhaps post on the bankruptcy and debt free boards here, to get some ideas about options to reduce the debt and work out how to pay it off.

    I think you also need to think about your relationship and about your finances generally. It may be that it would make sense for you to remortgage to pay off / reduce the debt, *if* this would be affordable and *if* you are confident that he won't then borrow more and get worse into debt.

    If you think there is an underlying issue which means he is likely to build up more debt if the current debts are cleared, then it may make sense to look at buying him out (transferring the house into your name, remortgaging and using some of the money to pay the most expensive of the debts) - if you do this, and close any joint accounts, then you can start to disassociate yourself from him financially, which may help you keep a better credit record.
    He could then look at whether some form of debt management plan would help him get control.

    You might want to consider having a formal post-nuptial agreement drawn up recording what you do so that in the event that things get worse and the two of you were to separate, you don't end up paying him a second time.
    • TBagpuss
    • By TBagpuss 17th Jul 17, 3:27 PM
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    TBagpuss
    • #4
    • 17th Jul 17, 3:27 PM
    • #4
    • 17th Jul 17, 3:27 PM
    Also - I think you can add notes to your credit records with the main agencies - If his mental health affects his judgment and is a factor in his getting into debt there may be steps he can take to ask lenders to make extra checks or limit what they offer him. He can also voluntarily ask his bank to reduce the credit limit on his cards.
    • peachyprice
    • By peachyprice 17th Jul 17, 3:31 PM
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    peachyprice
    • #5
    • 17th Jul 17, 3:31 PM
    • #5
    • 17th Jul 17, 3:31 PM
    How much equity is there in the house? If there isn't much bankruptcy won't effect the house and if there is they can only take his 50%.

    He can't sign his share over to you then go bankrupt, that will land him in big trouble.
    Accept your past without regret, handle your present with confidence and face your future without fear
    • lavinia21
    • By lavinia21 23rd Jul 17, 7:55 PM
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    lavinia21
    • #6
    • 23rd Jul 17, 7:55 PM
    • #6
    • 23rd Jul 17, 7:55 PM
    Thanks for all the replies. The mortgage is about £59,000 left on it and the value about £180,000. The debts have racked up whilst off work, husband not keen on remortgaging but if he knows bankcrupacy might still effect the house he might have second thoughts

    We're going to go see a trusted independent financial adviser who we have used before so we will see what they say.
    Positivity is the key there is a reason why life happens. Find your rainbow and ride it.
    • Pixie5740
    • By Pixie5740 23rd Jul 17, 8:45 PM
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    Pixie5740
    • #7
    • 23rd Jul 17, 8:45 PM
    • #7
    • 23rd Jul 17, 8:45 PM
    I think you should contact one of the debt charities for advice and support. There might be a debt solution available that's not as formal as bankruptcy. The debt charities are : CAP UK, National Debtline and Step Change.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Detroit
    • By Detroit 23rd Jul 17, 10:30 PM
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    Detroit
    • #8
    • 23rd Jul 17, 10:30 PM
    • #8
    • 23rd Jul 17, 10:30 PM
    It's not whether he's on the mortgage that's the issue, it's his ownership of the house.
    If he's a joint owner then half of that equity is his asset and if he went bankrupt would go to paying off his debts. Incidentally, as half of the equity is more than his debt, he would not in effect be bankrupt, as he could pay in full.
    You can't sign assets away to avoid them being taken towards debt so he would lose the house. However, you would have the option to buy his share from the official receiver.
    Tbh, in your circumstances bankruptcy isn't a great idea, you have more to lose than he owes. Go to CAB and see a debt adviser and they'll talk you through the other options.
    Last edited by Detroit; Yesterday at 10:41 PM. Reason: Correct error.


    Put your hands up.
    • rpc
    • By rpc 24th Jul 17, 11:46 AM
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    rpc
    • #9
    • 24th Jul 17, 11:46 AM
    • #9
    • 24th Jul 17, 11:46 AM
    What you describe isn't allowed and would get undone.

    You have £120k equity and £40k debts? That isn't bankrupt. You could always sell the house and cover your debts.

    As said above, you need help from a debt charity to restructure what you owe. A remortgage is likely to be cheapest if you can get it.

    You also need to get your spending into line to stop the debts building up any further.
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