Joint loan and divorce...

susiesromeo

Firstly hello! new here, so hi! :-)
I have a problem and would appreciate some advice if anyone can help?
I am recently divorced and my ex and I have almost sorted the financials apart from a joint loan we have.
Without going into to many specifics, as a result of the divorce, my employment position changed in that I am now seeking work and the bank have mostly come to agreements on the overdrafts, loans etc. however I still may be made bankrupt.
What I need advice on is the joint loan we have still.
The loan is in both mine and my ex'es name, and as part of the financial contract she would like her name to come off the loan (£25k) and it be solely mine. This is something that the bank will NOT allow, however the divorce contract, when sealed by the court, must be respected by them.
So my questions are:
If I do end up bankrupt and the loan is in both names, will the bank persue my ex? And if so, for her 'half' or the full amount?
Will the bank sue me if I sign the contract (knowing it is against their wishes) and the loan is in my name only?
Many thanks in anticipation, please help stop my hair falling out!
Regards, SR.

Brock_and_Roll

Whatever the divorce contract says, it wont affect the enforcability of the loan against you both, jointly and severally. (otherwise people would get married and divorced as a ruse to avoid paying their debts!)

Clearly, the bank is not going to remove her name from the loan - especially as they know your currently financial situation. If you go bankrupt they will pursue your ex for the entire outstanding debt.

Tixy

Hi and welcome

Can only answer one of your questions I'm afraid - hopefully someone else can answer the second bit.

susiesromeo wrote: »

If I do end up bankrupt and the loan is in both names, will the bank persue my ex? And if so, for her 'half' or the full amount? Yes, certainly and for the full amount

Will the bank sue me if I sign the contract (knowing it is against their wishes) and the loan is in my name only?

You might need to take advice on the second bit from the bankrupcty forum.

immoral_angeluk

Was a consent order included in your divorce?

susiesromeo

Hi everyone and thank you for your replies :-)

immoral_angeluk wrote: »

Was a consent order included in your divorce?

Yes, the consent order for my divorce covers everything - kids, house, finances; the lot...?

susiesromeo

Brock_and_Roll wrote: »

Whatever the divorce contract says, it wont affect the enforcability of the loan against you both, jointly and severally. (otherwise people would get married and divorced as a ruse to avoid paying their debts!)

Clearly, the bank is not going to remove her name from the loan - especially as they know your currently financial situation. If you go bankrupt they will pursue your ex for the entire outstanding debt.

Thanks Brock. When I spoke with the bank, they acknowledged that they had to respect the order of the court whereby if the Judge ordered her name from the loan, it had to be made so. You are saying this isn't the case?

the_insider

Unless the bank were a party in the court order then they don't have to pay any attention to it.

immoral_angeluk

I would contact your solicitor as really the debts should've been specified in the consent order, which would remove your liability for the loan but it doesn't automatically mean the company take your name off. I have a consent order for a welcome finance debt and they refuse to take my name off, even though they know I'm not liable for it, until it's settled.

joe1996

Remember, the lender will not take anyone off the hook, unless they are ordered to specifically.

Brock_and_Roll

I take it you have nothing in writing from the bank about their willingness to remove your name? It may be that the underling that you spoke to does not fully understand the situation.

Whilst they might "respect" the court order, unless they were a party to the case, then they are not bound by it. As a banker myself I would be amazed if they agree to take a joint mortgage name of the mortgage without being forced specifically by the court to do so.

Form the bank's perspective, they have two people on the hook at the moment. One of these will have assets and an income, the other is planning to go bankrupt. Its a no brainer! If they do remove exes name, let me know who the lender is and I will switch my mortgage andget divorced!!!