Effect of debt on spouse?

spark79

Hello,

I am hoping to get some advice for my Mum here. She married my step-Dad about 5 years ago and at the time knew nothing of how much debt he had but as time has gone on it's become apparent that he is severely in debt. He is in touch with the CCCS and has an arrangement with them but it seems he is still getting lots of phone calls and threatening letters.

Unfortunately he sticks his head in the sand and doesn't even open his mail or make any real attempt at sorting out the mess. He won't even talk about it and genuinely seems oblivious to the problems and the upset it causes my mother. She believes the debts to be upwards of £30,000 but doesn't know for certain.

I believe sometime this is bound to come to a head and I'm so concerned for my Mum's security I want to have as much information as possible. I'm scared they'll take the house.

What I'd like to know is what effect all this will have on her? The house is in his name - I believe he thought this would be for the best for her but I'm not so sure. The debts barring one loan and I believe water rate arrears (although that is in his name but on a property they live in together) are all solely in his name and were all accumulated before they even knew each other. They are really struggling financially and it just seems to be getting worse. Other than the one loan can she be held responsible for any of the debts? I have heard about IVAs and wonder if this would be a solution for them but how would this effect my Mum and the house? Would the house be likely to be sold and would it be best if the property was put in joint names or left as it is? What about if, heaven forbid, something were to happen to my step-father?

Sorry for so many questions but I believe that having as many facts on the subject is the best way of trying help.

I'd be grateful for any advice you could give me.

Many thanks

Iriahm

hi, what a pickle! you are in the right place and i'm sure some folks will help more.

I think that as long as they don't have joint bank accounts and keep their affairs seperate your mum is ok. Bit off that the house is just in his name, but if she can proved she has been paying towards the mortgage and running costs then she should have a legitimate claim should it have to be sold. I don't have an IVA but a debt management plan which was formally run by Payplan, I know do all the work myself.

he really needs to get his head out of the sand, if he doesn't then it will only get worse, but its up to him when his lightbulb moment will be.

we all write a state of affairs when we first come on here (SOA) so perhaps with coaching he could get everything together and detail all his incomings/outgoings, with your mums support. There is a sticky at the top of the forum how to do this!

good luck!

spark79

Thanks for replying.

No, they don't have a joint account thankfully. Do you think it would be a good idea to have the house in joint names? I think that when they bought the house he just thought it might be best to have her as seperate from his finances as possible.

She pays towards household bills and she used most of the money she got from the divorce with my Dad to pay what she could off his debts - in particular she was bullied into it when a debt collector came round about the council tax arrears one day. There is now nothing left from the money she got from that (which annoys me, it was her money that she was entitled to and it went towards paying off debts that she had no part of).

I just wish that he'd been more honest with her at the start of their relationship and I wish now that he would face up to it. All I can do is advise her on how to make the best of it and be prapered for what may happen in the future, it seems whatever she says he's not going to make a serious attempt at sorting out the mess. It is possible to recover from it isn't it?

Thanks again