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Northern rock shortfall advice please

dollparts
Posts: 1,256 Forumite

Hi, my property is currently on the market. My ex and I are going through a divorce and since he has been made redundant we have fallen behind with the mortgage. We are negative equity to the tune of 35k.
Northern Rock has accepted us for the assisting sale 'scheme' and I am paying a reduced amount to hold back any legal action.
A fair estimation is that the shortfall will be around 40k. I have my suspicions that my ex will try and stiff me for his half of the debt.
Is it possible to get the debt split 50/50 and pay the debt independent of eachother? I have spoken to Northern rock about this and was told that we will be jointly liable for the whole amount and any failiure to pay will be directed at us both.
I wasn't convinced because although the mortgage is in joint names we will be divorced and it could complicate any clean break order I apply for as part of the divorce settlement. ie: severence of all financial ties. Also was a little worried how they would pursue him for the shortfall if I am left to deal with them as I have been since separation.
Hope this all makes sense to someone and they can help!
Northern Rock has accepted us for the assisting sale 'scheme' and I am paying a reduced amount to hold back any legal action.
A fair estimation is that the shortfall will be around 40k. I have my suspicions that my ex will try and stiff me for his half of the debt.
Is it possible to get the debt split 50/50 and pay the debt independent of eachother? I have spoken to Northern rock about this and was told that we will be jointly liable for the whole amount and any failiure to pay will be directed at us both.
I wasn't convinced because although the mortgage is in joint names we will be divorced and it could complicate any clean break order I apply for as part of the divorce settlement. ie: severence of all financial ties. Also was a little worried how they would pursue him for the shortfall if I am left to deal with them as I have been since separation.
Hope this all makes sense to someone and they can help!
There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.
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Advice anyone???There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.0
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I don't know much about this, but can't see how being divorced makes any difference. If you were simply friends, or brother/sister you'd still both be jointly responsible for the payment of the debt. They'd go after both of you for any shortfall.0
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I should also mention that he has hinted he doesn't intend to take responsibility for the debt once the house is sold. I'm worried that I will end up being liable for the whole amount?There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.0
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NR are right - you are jointly liable - they will chase both of you until it's settled, so if he won't pay, they will expect you to, so make sure this is understood whilst you are finalising the divorce arrangements.
Unfortunately, you could easily end up footing the bill for the whole debt if he won't contribute.Mortgage Free thanks to ill-health retirement0 -
I have just spoken to the insolvency advice helpline and explained my situation to them. They have advised me to go bankrupt!
Am more confused than ever!There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.0 -
Hi, I am in a similar position.
I have spoken to a solicitor who advised that once the house was sold and we had a figure for what we still owed we would have to secure individual new agreements with NR (or other bank/loan company) for the remaining debt. This would then give you the 'clean break' and if he didnt pay it wouldnt affect you as you have your have separate agreements.
If however he refuses to sign this new agreement thats where the problems start. If you both earn similar amounts then he cant escape but it will increase your costs as you will have to get a solicitor and potentially court costs/trips to get him to sign for his half. If you earn vastly different amounts then he could argue it and you split the debt as a 'fair' %. If he doesnt have a job (my ex OH has threatened to quit her job) then I am affraid you will be chased for the whole amount. You can get a solicitor and chase him for half but as he has no job and no money there isnt really much point.
If my ex OH does quit her job once the house is sold I have also been advised to look at bankruptcy. I will be trying to avoid this.
There doesnt seem to be a straight forward way out of this for me either.
Good Luck!!0 -
Hi, I am in a similar position.
I have spoken to a solicitor who advised that once the house was sold and we had a figure for what we still owed we would have to secure individual new agreements with NR (or other bank/loan company) for the remaining debt.
Have you checked with NR that they'd be willing to do this?0 -
NR made it clear to me yesterday that they would not consider splitting the debt and that the account would remain in joint names for the duration the shortfall is outstanding.
I spoke to national debtline today and they confrimed this once again.
They were quite helpful and said my best bet taking into consideration my other debt I would be better off going bankrupt.
Have been reading up like mad about this today because I have so many questions and queries. They advised me the first decision I needed to make was to secure rented accomodation asap, stop paying all creditors and then file the petition. Have no idea whether to tell NR about this beforehand or just stop paying. Another problem is whether to wait for sale of home before filing as I'm not sure whether they will take shortfall into account-but then again if they repossess will it really matter?
Really need to do my homework this weekend to work out a strategy for me and my little one.There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.0
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