About to marry someone who is in debt - issues ?

CF_westfield

Hi,

My girlfriend has credit card debts totaling about 13K. She works with her father (who is 74), but takes no income as the business isnt doing very well. She doesnt want to get another job as her father cannot cope on his own all day.

We are about to get married in the summer, and i have a couple of questions in case she ends up having to go BR to clear the debts.

1. The house is in my name only, and she pays me nothing for rent - she sometimes buys some food if she can afford it - Would she have an BI in the house, now or in the future (assuming her financial input does not change) ?

2. What happens if a debt collector turns up on the doorstep ? everything in the house is mine (apart form her clothes of course!) - do i have to prove this with receipts,etc to stop them taking stuff ?

3. Can the debt recovery people take any of my salary to pay her debts ?

Many thanks for any advice.

skylight

1. If she has paid nothing into the property then no, she would not have a BI in it. If she had paid you £10k for new windows a few years ago (for EG) then she would. However, her official receiver may or may not try to claim a BI. Then you would have to argue it. But if she is paying nothing in, then there should be nothing to worry about.

2. If a "debt collector" turns up, then tell them to eff off and shut the door. They have less powers than the paperboy. If a bailiff turns up (AFTER a CCJ has been issued and not paid, it's a bit different and not to be confused with debt collector) then they also have no powers (depending on debt ie. council tax) but ensure you never let them in, because then they do have some power.

3. No. Under no circumstances whatsoever. Even if you were married they would have no right to your money.

And lastly, her debts have no impact on your credit rating either, unless you end up getting a joint account etc. Only then would you be financially linked.

beenthereanddoneit

Same as Skylight says. In respect of Q2. Also, just try to make sure you do not let anyone in. Receipts will help to prove that they are your goods (or copies of credit card statements, etc). Failing that, you may want to get a 'statutory declaration' drawn up. You can do one yourself (can't recall where the template is, but, I'll try and look) and get it sworn by a solicitor (they will charge) or at the local county court. Basically states that all goods are in the house are yours. But, unless there has been some type of court action against your gf (i.e. a CCJ if it is a general creditor she owes money to) then you have quite a way to go before bailiffs will get involved.

Carry on keeping an eye on the forum. Friendly bunch here. If in doubt, always check with the experienced members of this site first. They will guide you.

CF_westfield

Many thanks Skylight and beentheredoneit, you have made me feel much more at ease. Ill look into that statutory declaration.

another question - sorry - What happens at court - we have written to the credit card companies (or debt recovery agencies, as some of the debts have been sold off it seems), asking them if they will accept a lower amount (aiming for 20%, as thats what i can afford to pay to get them off her back) - 3 out of the 4 have not replied! - 1 has replied and said it will accept £1800 (orginal debt was some 2300) - we had offered 500, which they have refused, and now asked her to send her proposed monthly amount. What would be there next move? - as i have told her to send them a letter re-iterating that she has no monthly income and either they accept the 500 or make her bankrupt - (this letter has not been sent as yet, thought id check on here first!)
This is why i wanted to know if they can take my income - its good to know they cannot touch it - so she should be in a strong position to make them accept a lower amount, otherwise she'll go bankrupt and they'll get nothing!

many thanks

chris

[Deleted User]

Some of this sounds similar to my situation, I'm now on a variable tiny income, and my OH was trying to help pay my debt and was getting into debt to 'help' me yet we were scrapping to buy decent food - it had to change.

My debt so I called CCCS and they advised BR and I've followed through their advice and things are getting better although we depend on OH wage.

I'd suggest if BR is recommended by CAB/CCCS/ND to your GF then I respectfully suggest you might consider helping her raise the fees rather than try to pay off the debt, then you will both be 'clear'

beenthereanddoneit

I can only re-iterate what lbm says. Bankruptcy can be a very good option for some people. It is particularly suitable if you have no assets, no house, no savings, no income. Also, if you are not in certain types of jobs. But, your gf does need to take advice first. And, if CCCS/ND/CAB advise it, then yes, she should consider it. But it is a serious step.

You should be aware that in general, the type of unsecured debts that your gf has is unlikely to result in a creditor making your gf bankrupt. It costs them too much money with the potential to gain nothing back. It depends on the level of debt with each creditor as well.

They (Debt Collection Agencies (DCA's), etc) will appear to threaten, intimidate, and go for what they think they can get. But, remember what Skylight said earlier...they really do not have any secret powers. If you cannot reach an agreement with the creditors (or DCA's) then they may eventually go to court.

If that happens then they will be trying to get a CCJ against your gf. This enables them to get the debt recognised in court and to get your gf to pay it. Only if your gf does not pay can they then try to enforce action through other methods (i.e. Bailiffs - but you are not going to let them in are you? And if you do, you will be armed with your receipts and a Statutory Declaration to challenge them, won't you? There other chosen forms of enforcement are 'Charging Orders' - little use if your gf does not own a property. 'Attachment of Earnings Order' - again, not much use unless your gf is in a PAYE job).

So, a CCJ is serious but, if you do not want to go down the bankruptcy route (and this is only my feelings) then a CCJ is not the end of the world. A judge will decide on what your gf can afford to pay. Even a CCJ can be challenged if the amount ordered to pay by a judge is too high for your gf. But, we are getting way too far ahead of ourselves right now.

Just don't let anyone bully you or your gf in to paying more than either of you can afford.

beenthereanddoneit

ohh. thought of one more thing. May not apply to your gf. But, these credit card debts. When were the original agreements taken out? If before April 2007 then it may be worth checking whether they are enforceable or not. Post up a new thread if so and some of the more experienced lot, I'm sure, will take a look for you.

CF_westfield

Many thanks.

I certainly wont be letting them in - and im going to get a statuatory declaration done.

Ive heard/read about a DRO, as her debts are less than 15K - is this an option? Personally id rather force the issue to be resolved by her going BR or having a DRO, so then its over, as i can imagine that waiting for the creditors to take her to court could drag out for along time, and its just lots of stress and worry for potentially years.
As i mentioned before, we have written to the 4 companies involved offering 20% to settle it, and only 1 has responded - even if that repsonse was to say no, at least it was a response - its annoying that the other 3 have not even replied - and its been nearly 2 months! Does there come a point where they just write the debts off and stop chasing ? why would they not respond, i dont understand it.

thanks
chris

beenthereanddoneit

Not sure whether a DRO would be suitable. If you are living together, I believe that they can take your income into account (as it is a household income). There are some quite strict guidelines (for e.g. maximum of £50 available spare income after all household expenses taken into account).

I'm no expert on DRO's really (or anything much else really). Just been there and done it myself.

I don't think they will ever get to the stage where they simply write off the debts (unless they know that they can't enforce them through lack of cca, for example. Even, then, it would stay on the gf credit file. The debt does not simply disappear just because they can't enforce it). It is sometimes easier to deal with creditors and get a Full and Final Settlement once the debt has been sold on to a Debt Collection Agency.