Trying to help my sister

Stuart_Bellamy

Not sure if anyone can help.

My sister's ex-husband took out a secured loan with FirstPlus against their home. Although the house was only in his name she was told by him/First Plus that she needed to be on the loan.

Since they have split up, the house has been repossessed and the proceeds didn't cover the mortgage and loan. Her ex husband has apparently entered into an IVA to agree to pay FirstPlus so much a month.

She has been told that FirstPlus may come after her for the amount that they are unable to get from him. Is this correct?

18 months ago FirstPlus did write to her asking for details of her earnings and outgoings but she was told by her divorce solicitor not to reply and has heard nothing since.

She needs to know if she needs to worry about them coming after her and if they can come after her whether they have to do this within a certain time period.

Thanks for everyones help in advance.

Rafter

If the loan is in joint names, then your sister is jointly liable for shortfall. If her ex husband declares himself bankrupt then she would be responsible for the whole debt outstanding.

If they don't try to take payment from her within 6 years then the debt would be time barred.

Writing to her 18 months ago would count as part of this time.

R.

Stuart_Bellamy

Thanks for your help.

When does the 6 years start from.

The event in order are.

a) he defaults on the loan
b) she received letter from FirstPlus
c) house sold but didn't cover debt
d) he enters into IVA

Will she be able to ask for it to be removed from her credit rating after the 6 years are up or will it just disappear. Not sure if it is showing on her rating but assume that it is at the moment.

She's got her own debts which she has started to pay off but if they come after her for this she will end up going bankkrupt anyway and she will have paid off the debts for nothing.