Bankruptcy and marriage

bunglesabout

Hi all
my uncle is currently considering bankruptcy due to the debt he got into after a heart attack. He did not have any health insurance and so ended up living off credit, with the hope that one day he could return to work and begin to pay off the debt. However due to complications with his attack his doctor will not sign him off as fit to work, so he cannot get employment.

What concerns him is that both he and his wife have joint accounts, credit cards etc... and he is worried that if he claims bankruptcy she would still be liable for the debts incurred.

Do they have to go bankrput together since their accounts were joint ones or can he go it alone.
She is still working and they have tried talking to DCA's and arranging small monthly payments, but as he can no longer physically work, they struggle will even the small amount they are currently paying.

Also if he goes it alone, will there be any effect to her credit rating as well as his?

Any advice would be appreciated as I know nothing about bankruptcy and I know he is worried.

Bungle

skylight

You are right. If he goes BR alone, then all joint debt will fall to the wife and it will affect her credit rating (if it hasn't already) simply because they are linked. If they were to both go BR then all debts go.

It really depends on what assets they have, income, property etc. DCAs are NOT the ones to talk to; try one of the free debt charities; Payplan, CCCS etc.

tigerfeet2006

Hi and welcome to the board.

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.National Debtline operate an advice on first phonecall system CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

Read as much on here as you can, starting with the Bankruptcy Help sticky and that will answer a lot of your questions. But don't be afraid to ask about anything you don't under stand.

http://forums.moneysavingexpert.com/...html?t=1056083

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

If they have any joint debts then she will be responsible wholly for them if he goes BR.