How can I help my partner ?

Mrs_Tiggywinkle

My 'boyfriend' / partner is just about to have his house repossesed, & with numerous other debts has just been advised that bankruptcy is the best option to take. His debts etc were incurred before he met me.

He has been looking for somewhere to rent but his main stumbling block seems to be that most letting agents do credit checks, which he would fail at. He's also self employed & due to problems paying his accountant, isn't up to date with last years accounts either - though this will be rectified soon as I believe for bankruptcy he must bring everything up to date.

One option (which is looking to be the only one at present) is that he moves in with me. What I would like to know is, how will this affect my credit rating? I may well need to apply for a mortgage in my own name soon, & I dont want to jeopardise this.

If he does move in, he will need to contribute to household bills, food etc. How will this be viewed by the OR? Will my income be taken into account at all in his bankruptcy ?

If he moves in, & brings some of his furniture , TV etc, how would this be viewed ? Could these items be taken away ?

He is also worried about his bank account when he is bankrupt. He has to pay for goods he needs for work , often online using a Debit Card. Can he still do this once he is bankrupt? If he CAN'T, would it be possible for me to operate a business bank account on his behalf? Would this be allowed or cause me any problems.

Finally, I lent him quite a lot of money for trade certificates recently. Will he be allowed to pay me back ?

Sorry for all the questions, I just want to be able to help him & have a nice life without it affecting my current & future financial situation. Things are uncertain for me too (my ex husband ran off with a Belgian woman, I am now left alone with 2 teenagers !!) but I want to do what I can to help.

Thanks in advance for any advice !

skylight

Firstly, it wont affect you or your credit rating at all - as long as you do not share finances at all. I would never suggest you getting an account for his business in your name; but I would say this to anyone! He is able to open accounts after BR, basic ones with debit cards and online banking facilities - the Co-Op Cashminder is BR friendly.

He could rent, but yes the credit check may be an issue (again, don't go guarantor for this ever). (Cos I am a believer in love fading but money doesn't!) If he moves in with you then you can class him as a lodger - give him a lodgers agreement (FOC on the internet) and charge him rent accordingly. You can be his landlady rather than his girlfriend for a while to see how things pan out with him living with you (plus you can evict him without a moments heistation....) I'm not trying to put a dampener on things, but although you want to help him, you still have to protect yourself. Anyway, paying rent and bills is not an issue to the OR; you are also then seperate households and he will not need to declare your contribution to the household either then.

His furniture etc cannot be taken away; unless they are antiques of value etc. They are not assets. And as to the certificates you paid for, then no he cannot pay you back - Technically. You would need to go down as a creditor on his BR forms (I would ignore this though and not mention you espeically if you are his landlady). If, however, he wants to pay you back out of his surplus then he can do what he likes with his own money all on the QT. We tend to be more moralistic when repaying friends/family than the banks.

stevemarsh1976

Hi Tiggywinkle

Welcome to the boards, Im not in a too dissimilar position as your partner so can answer a few of your queries.

Firstly if he moves in with you and hes not named on a mortgage or any credit you have then he wont effect your credit rating at all. I myself moved out of my own house and in with OH safe in the knowledge I wont effect her status.

Should he move in then it would be expected he contributes to bills etc. on the forms he will need to complete he will do a full income expenditure and also there is a section to put what your own contribution is. For example I put down full bill amounts tottalled them up and put down my OH will contribute half of that amount. If and when he gets to this stage theres many on here who can help with the SOA as they did with my own and got it spot on

The OR wont be interested in furniture and tv's unless there high value or antiques

Bank accounts wise the co-op are BR friendly and offer debit card and online banking also very nice to deal with

Its important if h stops paying creditors he doesnt pay you either. HE needs to put you on his forms as a creditor but once his BR is resolved he could then start to pay you back.

MOST importantly has he taken some advice from one of the debt charities like CAB or the CCCS as this most definately is his starting point.

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

Sunnylooloo

Mrs T - hello and welcome.

You say your BF has been advised can I just check he has sought help through one of the debt charities?

http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/

As far as I am aware (but a bit new to this) I don't think your credit will be affected by his situation.

On how it affects his SOA I am really not too sure but some one will let you know.

Furniture I very much doubt this would have much baring on anything unless he has a start of the art TV/home cinema system that is worth thousands.

I have co-op cashminder account and I can use my Debit card for most things on line (not with M and S for some reason), not sure about your business account question.

Anyway this will give you a bump up and someone will be able to help a bit more than I have

LL

Mrs_Tiggywinkle

Thanks for replies...

Yes he has taken advice from debt charities - due to the repossession his local council put him on to a CAB lady, who in turn referred him on to 'Business Debt Line'. They thought he could possibly do an IVA, but when he spoke to an I.P, was advised that in his circumsances (with negative equity on the property) & £75 K of debts, bankruptcy was the best option.

We have been amazed at how hard it is (& how little his local council really want to help) to find housing when you are in this situation. We didn't want anything to affect me as I have 2 boys who are applying for EMA/student loans etc shortly, & I may well need to move & re-mortgage in my own name very soon, as ex hubby wants his share of our equity!

The 'landlady' option sounds like a good idea, & one I will look in to.

Sunnylooloo

Mrs T - just one little word of warning (not really to do with BR) - is your divorce settled/finalised? as I know that when I has a flatmate live with me and then a new partner - my ex was entitled to claim for "Occupational Rent" so just need to be careful of that.

The council...... I know when I leave my home there is not even any point wasting a phone call or trip to the local authority...... I really wonder how anyone gets a home in the first place from them!!.

Good luck with everything and keep posting

LL