Loan in husbands name - now my burden?

mezrie

My husband took a loan a few years ago in his name, however at Christmas he suffered a mental breakdown and since then we have been struggling financially. Life has been pretty rubbish so far in 2011. I am working full time and managing to cover all other outgoings apart from this one. This particular loan company have requested a joint income and outgoings sheet, it seems they want me to default on my loans/credit cards in order to be able to pay them a share. This worries me as I am just about managing to cover my debts and responsibilites and have never had any bad marks against my credit file. I love my husband to bits and realise that what he is going through right now is not in his control but I find it rather upsetting that his loan people are now looking at me to suffer in order to get their money. I appreciate they want their money however it's not in my name and joint income and outgoings weren't considered when he took the finance. I could afford to give them maybe £20 a month out of the £200 they were used to, maybe this would help? The loan was all based on his sole earnings and outgoings. Is it standard procedure for me to now take on his debt? I fear i won't get the answer i'm hoping for but the question needed to be asked thank you for any input...very worried about the future if it means me having a bad name regarding my credit file :? x

CLAPTON

you are not responsible for your OHs debts and you are quite entitled to refuse to give them a joint income/spending info or pay anything at all

however it would be better to understand the full picture
e.g. does he have any assets i.e. property that they try to attach a charge to?

ILW

The debt is not your responsibility, but any defaults could affect your credit ratings as you are financially linked.

PNPSUKNET

Its not upto you, however you are asking the lender to accept 90% less a month. They dont have to and can sell the debt or take it to court, which adds more charges. The world is full of scammers and wont pays, its a little bit of give and take. If you have a mortgage it will be a lot higher rate with a default or ccj

birkee

This cropped up in another post recently, and was clarified that she is only liable for debts she is co-signatory to.

However, what happens when they are co-owners of a house? They could recover debt from his half surely?
Also, is all the property in the house hers? Who paid for the TV etc?

No comments about what will / would happen....just pointing out that proper knowledge is the only defense agaiinst creditors.

ladylouise62

I think that birkee is right in pointing out that they could go for anything that could reasonably be expected to be part owned by him. I would suggest that you speak to someone like Citizens advice who could mediate and advise you of what your/OH rights are.
The loan company could possibly be offered that £20, but it would have to be made very clear (in writing) to them that you are NOT taking responsibility for the loan and that this would be all that could be afforded until the situation improves - but again, the CAB would know better (or google debt advice for your area - there are a lot of charities out there at the moment helping).

Apples2

On no account give them your bank/card details to make any payments.

How many posts on here do we see people ranting that they stopped paying, only to find they have sucked money from another card they have on file (mother, father, friend etc)?

I'm surprised they are even speaking to you as you are not the account holder, whatever you do decide on, transfer the money into OH's account and let them take it from there.

ladylouise62

...oh, and my best wishes for you and your OH - I understand the stress it must be causing you.

paddyrg

Just worth checking - did your partner take out PPI with the loan? Has he any sickness insurances which could help with the pressure? Do you have a 'premium' bank account with some insurances bundled into the monthly premiums? Worth checking all the paperwork in case you're insured which would release some pressure?

mezrie

Hello, thank you all so much for your posts, I didn't think i'd get so much support. I have spoken to one person at the loan company on one occassion, my husband had to say it was ok to speak to me. That person also said to draw up a income and outgoings sheet which my husband later went through with them on the phone. They then sent a kind of print out of this in the post along with some guidance and advice. My husband rang last week as they said they'd call and didnt only to be told to send another income and outgoings sheet of which what I could afford if i defaulted on my loan. I didnt' understand why really. On the other occasions we have spoken to them they've been very sympathetic and have said it sounded like it would be a pound a month until my husband got back on his feet again but last week he got through to a bit of a cowbag who insisted it was something I needed to take on. Apparently £15 is added to the debt every time we don't pay. We have no savings or assets as such, we have two cars which are needed. We rent so no mortgage...no insurances on anything. Thank you again for so much input, i'm not sure what the next move is. I suppose send the information off again that they already know with a covering letter advising that I am unable to cover the debt which is not my responsibility...

molerat

I would advise speaking to one of the debt charities before you send anything further to the company. They will advise as to what is the best action to take. Have you got any joint accounts, if not they are stuffed and will have to take what you give them !!