questions

phil999_2

Hi all,

I am now trying to help my wife.

So before i meet here she ran up debts with her ex husband (who i should add is her step brother as well, although when they meet they were not)


They are now deviorced and he is living in ireland (recently remarried) but she seems to have been left all the debts. To me that sucks as they used to pay together and even after they split they made joint payments (he paid her and she paid the loans)

The loans have resulted in a CCJ which is like 6 years old in her name.

The loans are for

£900 natwest - in both names
£8k mercantile - according to them just in her name
£8k abbey - not sure who's name this is in but believe its both

She is not trying to get away from her part of it (after all since we have been married 3 years, she has been paying all of it) but she feels it is unfair and would like to reduce it, try to send some it it to him.

Does anyone have any comments / advise?

She has now had her "light bulb" moment some time ago as i did and is smarter but anything she can reduce will help her become debt free quicker.

Thanks for all comments.

Phil

grumbler

Unfortunately AFAIK, for joint loans each applicant is jointly and severally liable for the full amount borrowed ...

Tootsie_Roll

Phil

Sadly this situation occurs all the time, unfortunately for your wife all these debts will be 'joint & several', this means that both parties are equally liable and your wife is obligated to pay the whole balance off. She can of course let the companies know her ex's address and get them to write to him as well - how effective this will be is unknown as he has moved to Ireland and UK banks cannot enforce the debt in the same way.

If the debts are in serious arrears then she could contact the lenders and offer them a reduced amount in 'full & final settlement' but you will need a lump sum to be able to do this. There is no set rule as to how much they will discount but start by offering 30% of the outstanding debt and increase from there. In addition the lender who has gone to the trouble of getting a ccj is unlikely to accpet anything less than the full balance.

phil999_2

Tootsie_Roll wrote:

Phil
this means that both parties are equally liable and your wife is obligated to pay the whole balance off.

if when both parties are named on the loan surely both parties are responable?

Tootsie_Roll

Yes - they're both responsible and liable for the whole debt not just half of it. She cannot just say that she will only pay half.

phil999_2

ok thanks, so how does full and final payment work, could it work if the interest has been frozen and they have an agreement to pay x back. and example of this is the natwest one she pays £60 a month what do you think would be the min they would except? also what is the success rate of full and final payments also do they lead to addional ccj's / blacklists with the companies involved etc?

Tootsie_Roll

As I mentioned - there is no hard and fast rule - you just have to write to them using one of the template letters from national debtline (http://www.nationaldebtline.co.uk/england_wales/temp/7750_97711.pdf - make sure you make the offers on her behalf - and wait for the responses. Some companies will amend the credit referance agency file to say you have paid in full, other will state you have partially paid - it won't make a huge difference as she will need to wait for them to fall off the file in 6 years anyway.

The most important thing is that they stop chasing her for the debt.