Help - Debt not in my name

anolan

Hello all,

This is my first post so any advice would be greatly appreciated.

I discovered about 8 months ago that my wife had been helping her brother out financially following his divorce and has amassed debts of between £20,000 to £25,000. All of these debts are in my wife's name. Yes it has caused much argument and upset but I want to put all my efforts into sorting this out. As I have a financial link with my wife (mortgage etc) I am sure this will have a major effect on our credit worthiness over the next few years. I have never ever been refused credit. I have been trying to get some commitment from her brother but have been quite patient but I think I will have to act soon and do a damage limitation exercise if nothing else. Her brother earns a wage, is married, has a house (maybe with equity) and has two cars but has a terrible credit record. I am about to serve him with a letter stating what I demand he does but not sure if that will have any effect. I have taken advice from National Debtline and other organisations but feel a bit lost and really need some sort of action plan. I am not sure what I can actually do.

mountainofdebt

I can imagine your anger with both your wife and BIL but for the sake of relationships all around, I think the best way of approaching this is to take a firm but not too firm approach.

Does your BIL acknowledge that he owes you (as in the plural you!) the money? If he does then at least that's the first hurdle jumped.

Would it be possible to get together as a foursome (as the debt repayment will obviously affect his new (?) wife as well) and get a firm committment from him - preferably in writing - to repaying the debt. If you get this is writing and he later defaults then you will be in a much stronger position to take legal action.

If there is nothing in writing and he denies the debt then I'm not sure what course of action would be open to you and your wife as she obviously took the loans out in her name.

I'm only guessing here but so long as the repayments are made by you and your wife, the only consequences I can think of immediatly is that your wife would be very unlikely to get another loan or a credit card.

Iona_Penny

Hi anolan and welcome!

Not sure that I have much to offer in the way of advice, but just a couple of things occurred to me when reading your post:
1. is your wife unable to keep up the repayments on the money she has borrowed? If the payments are being made then there is not likely to be damage to your credit rating, except reducing your future borrowings.
2. have you talked to your brother-in-law? Just wondered if you can spell it out to him, just strikes me that 'serving' him with a letter may be a drastic 1st approach, and if he becomes difficult do you have any proof that he has had this money from your wife as a 'loan'.

I hope that others will have some more advice, but it worries me that if he denies that he was going to pay it back, then what? I also hope your wife realises she cannot sort out his problems by throwing money at it.

Whoops! posting at same time as Mod.