Will my wife going bankrupt effect the rest of the family?

spirius

My wife and I have completely separate bank accounts and loans.

Mine are all paid off in 6 months time, but hers is not paid off for another 3 years and it costs about 1/5th of my income each month.

She had this debt when we married.

I'm a PhD student and my funding runs out in September...I can't guarantee I will get a job that pays enough to cover our expenses...with her debt.

If she goes bankrupt, will it effect my plans to start a company, renting in future, our househould possesions, my car etc?

Any help much appreciated!

charliewalsh

Do you owned a property jointly and is there any equity on it? Do you have any other asset jointly owned?

In BR you and your wife is separate entity. Unless something is jointly owned or owed, OR will only look at everything that's in your wife's name.

If she went BR, it will not affect you starting a business or renting in your name in the future or your car (unless the car is in her name).

I hope these helped.

spirius

Much appreciated.

And sorry about the spelling...I'm obviously tired!

We rent privately and her bank account only has loan payments coming out. I have to put money in it for that, but we can't afford it.

We don't own any property or cars together. We have no joint debt.

Sad as it might sound, I'm concerned about things like books, tv, dvds etc

Merry_Gentry

Does your wife work?

Merry_Gentry

Sorry, what that should have said is: if there are no joint debts, and only your wife going bankrupt, then it shouldn't have too big an effect on you. It's only if you have joint debts that if she goes bankrupt they fall to you.

Does she work? As you mention that you are paying off her debts?

spirius

Hiya

No, she isn't employed. Full-time mum.

I get a tax free stipend for PhD funding and pay her debt out of that.

Merry_Gentry

Then I would think it would be quite a simple process for her. If her debts come to less than £15,000 she might be better off waiting for the new Debt Relief Orders that are coming in.

spirius

Debt relief orders?

tigerfeet2006

Hi and welcome to the board

Here is the article on DRO's

http://forums.moneysavingexpert.com/showthread.html?t=1385275&highlight=debt+relief+orders

You need to get your wife to talk to one of the debt charities to go through her options. There are links and numbers in my sig. and more in the Bankruptcy Help sticky at the top of the board. Would suggest you read that sticky as it has a lot of info in it.

It is important she talks to a debt charity as the judge can delay her petition if she hasn't taken professional advice.

spirius

Thank you

It just occured to me that they might want her engagement ring?

tigerfeet2006

When was it bought? Was it on a CC? No need to say figures but is it worth over £1k