Advice for a friend in a nasty mess with joint secured debts please?

Jesthar

Hi everyone

I need some solid advice for a friend in rather a pickle. The short version is she's just left her husband (I won't go into details, but the maneuver involved help from several of her family and a plan with a van, if you get my meaning). She was always good with money before she got married, but is now saddled with a joint interest only mortgage, a joint secured loan (about 30k I think), and a good chunk of unsecured debt (from trying to provide for her twins despite everything). One bright spot is she's still very organised, and has all her paperwork!

The unsecured stuff she's getting the routine hassle from familiar DCAs over, and although she is very vulnerable to their bullying I know what to do with that lot. The problem is the joint debts, as I've no experience of those.

The mortgage is Northern Rock, and has been going around 8 years I think, all interest only. She's been continuing to pay her half of the monthly share, but he's not paying anything, despite promises. He's also determined not to sell, and is refusing to make a trip to the council offices to remove her from the council tax too. All that means she can't get on the list for a council place for herself and her two boys in her new location due to being a homeowner, so she's living with another family member - which is far from ideal due to rocky relationship issues on that front.

It's the same with the secured loan, she's been paying her half, he's paying nothing. In the past I believe she has paid off extra (as she has often been the only one to be holding down a regular job) on the understanding he would pay the rest (no prizes for guessing he didn't), and now he's trying to pressure her to do that again!

Does anyone have any advice as to her options, or where to turn? She told me someone had told her on the phone that even if she went bankrupt, she'd still be liable for the joint secured debts, and they'd be coming after her over him, as he's got no money or reliable income and she'll be getting benefits for the kids.

Just to be clear, she naturally doesn't care at all about keeping/losing the house!

I'm out for a bit now, but wanted to get this up as another family member has asked me to talk to her ASAP, as she's getting pretty distressed with it all.

Thanks!

~Jes

RAS

Hiya

I think she needs to write to the Council and tell them when she left the house and that she is no longer liable for CT; get them to sign for it. her local councillor may have a surgery this weekend and would be a good person to talk to.

With respect to the secured debt, if she is not bothered about going bankrupt, then she needs to stop paying anything towards the mortgage and secured loan NOW.

What will happen is that the mortgage provider will chase her but she needs to stand firm. Once the house is repossessed, if she handles it right (does not sign anything) then both secured debts get paid off if there is enough money. If there is a shortfall, then this becomes unsecured joint debt. At that point her BR kicks in and her responsibility for the joint unsecured debt ceases to exist, but her ex remains liable for it all.

Please go and talk to the BR forum as they know the ins and outs as the timing of the two actions is crucial. A pm to debt doctor might be useful.

BR is not a bundle of laughs and the amount you are allowed to retain beyond your SOA is now massively reduced, but if she is going to be getting benefits, that may not be an issue.

Jesthar

Thanks RAS, useful info as ever

Yes, the councillor would have been my suggestion for the CT, but unfortunately the marital house is a couple of counties removed from where she is now. Would talking to the local councillor still be of benefit? If memory serves the old council have already told her the only way to be removed is for him to go do it, but I'll try and double check that; I can't think it's the only option.

At the moment she's doesn't care about losing the house, but she really isn't comfortable with the idea of going bankrupt. I'm not really sure what options there are for her given the circumstances at the moment, though I don't know the whole picture yet.

I do have a good notion that a lot of the card/store/catalogue debts (mostly with DCAs now) are old accounts and may well lack a valid CCA, so CCA requests are most definitely in the plan. So after the pesky CT, if the mortgage and secured loan could be taken out of the frame she may have a chance, but I need to learn more about that and talk it over with her fully.

I'm also very worried about her ability to stand up to any of the money people, let alone the mortgage company. She's been through a lot, but she's also conscientious (plus feeling very embarrassed and guilty etc.) and she's been trying to pay all the DCAs whatever they demand whether she can afford it or not as they've been scaring her so badly with threats of court etc. Robbing Peter to pay Paul and all that. She struggles to even hang up on them, despite the fact they keep calling after she took my advice and told them 'writing only from now on'. I know some debts have been passed on between DCAs two or three times already despite her paying them faultlessly, so they must be making their profit out of her quite nicely... :mad:

Anyway, I'll hopefully be seeing her soon, and try and get an SoA done, followed by some DCA kicking. In the meantime, all input welcome as ever I'll pop this over on the BR board as well as suggested.

~Jes