Joint Debts Advise Required

noomsybaby

Hi, me and my partner have split up and we have joint debts (loan, mortgage, secured loan).
I was considering bankruptcy before we split, and would like to know what happens if one person declares bankruptcy but not the other in relation to joint debts. After mine is served will I be released from liability from the debts or what will happen ? :think:

Regards

Neil

fermi

noomsybaby wrote: »

After mine is served will I be released from liability from the debts or what will happen ? :think:

Yes. you would.

The mortgage/secured loan would continue to be secured on the property though. But if/when it is sold, you would not be liable for any "shortfall" that might then exist.

If that is something that you do, then you must be careful what repossession paperwork you sign. Mortgage companies will often try to get you to sign a "deed of acknowledgement" after bankruptcy, which would make you liable again. You can refuse to sign this.

noomsybaby

thanks fermi, i have already voluntary surrendered house last august and I now have a shortfall (strangely not chased me for and shows as settled on credit report ?) so all my secured debts are effectively unsecured again.

So if I now go bankrupt but my ex doesn't what happens to debts, will I be cleared of liability once the bankruptcy goes through ? What happens to the debt at the end of my bankruptcy will they start chasing me again ? or will I be free of the debt ? I presume all liability will then rest with the ex (she has no means to pay, on jobseekers)

Regards

Neil

fermi

Has the house been sold by the lender yet?

noomsybaby wrote: »

So if I now go bankrupt but my ex doesn't what happens to debts, will I be cleared of liability once the bankruptcy goes through ?

Yes.

noomsybaby wrote: »

What happens to the debt at the end of my bankruptcy will they start chasing me again ? or will I be free of the debt ? I presume all liability will then rest with the ex (she has no means to pay, on jobseekers)

They may start chasing you at first, but a bankruptcy would protect you and you could tell them to "bog off".

All liability on anything joint would rest with the ex, yes.

fermi

I should stress that bankruptcy is a VERY serious step to take.

It's not something that you can do without professional advice that it is the best option for you.

Advice on bankruptcy.

The court/judge will normally ask whether you have taken professional advice that bankruptcy is in your best interest. If they believe you have not taken proper or sufficient advice then your bankruptcy may be refused. There are many places and organisations that you can get advice from, but the ones that people on this board have found most useful are listed below:

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)

Others:

• Business Debtline - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

MSE also has a specific board for help/support.

Here ----> Bankruptcy & Living With It


You can also post here on DFW regarding other ways of dealing with things.

If these are not being chased, then you best option at present may be something different.