Loan and being terminally ill

bobajob_1966

im_obsessed_with_mr_t wrote: »

wasnt sure if you could do it or not it such a shame im reading in to it now seeing if there is any other way around it. but its not overly clear.

one thing i am sure of though is if you cant afford repayments you only have to pay what you can as long as you make a reasonable effort then there is little they can do

It won't work, and the OP has said that repayments are not an issue at present. Is it really helpful to give bad advice to someone in this situation?

im_obsessed_with_mr_t

bobajob_1966 wrote: »

It won't work, and the OP has said that repayments are not an issue at present. Is it really helpful to give bad advice to someone in this situation?

im just trying to be helpful im sorry i will no longer post on this thread as dont want to be a burden to anyone. i hope everything works out ok and im deeply sorry for you situation.

Macblack

Guys,

Thanks for your help...

A quick chat to citizens advice have suggested a few scenarios the worst being an order placed on the house to recover the debt when the house is sold (whenever in the future that may be) the best being that the loan was miss-sold and could be written off..

They've arranged a meeting with an expert in this area so that's great, at least we'll know.

The thing I wanted to protect the most was the house, it's bad enough loosing someone but to loose the home they lived in for over 30 would probably be too much...

Thanks again

immoral_angeluk

LovelyLeeds wrote: »

A bit black and white - I based my reply on this:
Married couples
5. Married couples are not liable for each other's debts unless both parties signed the agreement, or the debt carries a joint or several liability.
A creditor may ask the court to make an order against the husband for his wife's debt where she claims to have no assets particularly in the case of supply of necessities. The court might consider the wife to be trying to evade responsibility for goods or services supplied to, or used by the couple, and grant such an order. Legal advice is recommended in such a case.
Once obtained, a judgement may only be enforced against the assets or wages of the named debtor, but in practice, it may be difficult to distinguish each other's assets where goods are owned jointly. Legal advice should be recommended when one spouse seeks to disclaim responsibility for debts incurred by the other.
In practice, creditors should ensure a married woman's own credit-worthiness, or ask for her husband to be guarantor where she has no income of her own.

Where did you find that?
I have never heard of that, nor have I ever seen it used by a creditor. Creditors would not be able to financially assess the credit worthiness of a spouse unless there is a financial association on their credit reports and even then it's a best guess.

Joint and several liability is fairly clear cut in that only joint account holders (not just card holders) and guarantors are liable for the debt and can be pursued.

After death the debt would be expected to be repaid out of any estate, which could include a share of the property. However you should seek advice from a specialist housing solicitor as it's quite complex and you will need to ascertain if you are tenants in common or not on the mortgage, as this has an affect on the rights of creditors to claim estate from the property. You could also speak to Shelter's helpline.

somethingcorporate

Macblack wrote: »

the best being that the loan was miss-sold and could be written off..

On what basis? Very, very unlikely as he obviously had the means to repay.

Macblack

Something corporate, I don't pretend to know, that's why I'm looking for advice. The CAB actually rang us back to say they were appalled that a High Street bank would give a 7 year unsecured loan to a 71 year old in ill-health for the last 30 years (he retired 30+ years ago due to ill health). It was there suggestion that there's a possibility of a write off.

I don't know the answer to this one yet, its difficult to know whether its better to approach the bank now or after my father in-law's death, we are trying all we can to keep his house for his wife and daughter.

gizmo111

How much will his estate be worth -after paying funeral expenses etc?

patman99

His wife and daughter cannot be forced to sell. If a charge is placed, then the Bank can only recover their money once the house is sold.
If when both in-laws are dead, their will determines that the house is sold and the estate split between the children, then at that point the Bank will get their cash. However, if the house is simply left to the daughter who currently owns 1/3 of it and she decides to leave it to her children and so on, it could be many, many years before the house gets sold and the charge paid.

redpete

Macblack wrote: »

I don't know the answer to this one yet, its difficult to know whether its better to approach the bank now or after my father in-law's death, we are trying all we can to keep his house for his wife and daughter.

I don't think it is worth spending time and energy now to try to sort it out. I suspect that any moves to try to offload assets now will be seen as only being done to avoid debt. I would also not involve him in trying to make a case for him being mis-sold the loan now - not something I would want to be involved in if I had just a few weeks to live.

Deal with the immediate emotional issues of losing a loved one and deal with the issues using good advice once you need to sort out the estate.

noh

LovelyLeeds wrote: »

A bit black and white - I based my reply on this:
Married couples
5. Married couples are not liable for each other's debts unless both parties signed the agreement, or the debt carries a joint or several liability.
A creditor may ask the court to make an order against the husband for his wife's debt where she claims to have no assets particularly in the case of supply of necessities. The court might consider the wife to be trying to evade responsibility for goods or services supplied to, or used by the couple, and grant such an order. Legal advice is recommended in such a case.
Once obtained, a judgement may only be enforced against the assets or wages of the named debtor, but in practice, it may be difficult to distinguish each other's assets where goods are owned jointly. Legal advice should be recommended when one spouse seeks to disclaim responsibility for debts incurred by the other.
In practice, creditors should ensure a married woman's own credit-worthiness, or ask for her husband to be guarantor where she has no income of her own.

I believe you got that info from here:-
http://www.cab.org.je/index.php?option=com_content&task=view&id=781&Itemid=59

As you will no doubt notice, if you care to read the whole page, it refers to the law in the Island of Jersey which is a completely different jurisdiction.

UK law is what applies here and thankfully, in this matter at least, things have changed since the 19th Century.