Ex husband and very old debt

Giraffeseeker

Hi, a complex one...

Around 10 or 11 years ago my then husband took a loan to pay a tax bill for his company and buy a new Mac (he was a graphic designer). It was with Intelligent Finance and it was some weird flexi loan where he didn't actually need to pay it back for ages. It was for £10k and was a personal, not a business, loan.

Ultimately he defaulted but weirdly they did nothing until he got an annual statement saying 'Write off' and giving a zero balance. I anticipated a DCA letter but none came. It was odd, like the whole thing had just vanished. He checked his credit file and couldn't find it. He subsequently closed the IF bank account too.

When we divorced and sold the house we paid all debts and realising that it was almost 6 years since receiving the 'write off' statement we assumed the debt was statute barred and decided not to pay that one.

We totally forgot to pay off a tax credit overpayment and when they caught up with me I set up a payment plan for my half and gave them his contact details to collect his half. They never bothered contacting him and when my half was paid off and the DD stopped they chased me again. I put them in touch with him and he is now repaying that, although annoyingly my name still appears on the debt along with his.

He has just had contact from a DCA about the IF loan and, instead of saying 'stat barred', he admitted it was his and made a payment! He now claims that as it was a debt of he marriage I should pay half as his new wife thinks morally we should repay this.

I have no intention whatsoever of paying a penny, even if I could afford to, but he says if i don't he will stop paying the tax credit overpayment and tell them to chase me for it.

Ok, I agree morally you should repay debts, but not when a company has not chased a debt for 10 years (and my name was never on this debt).

Anyone know where I would stand he did stop paying the tax credit overpayment? It is in joint names but I have paid half +1p of this debt.

bargainbetty

If the tax debt was in both names, they will pursue either of you for the full amount. You might be able to go to court with proof of your payments and have a small claims court issue an order to pay if you can prove half of it is his.

With regard to the IF loan, whose name is it in? If it is his, then it is not a 'debt of the marriage' and his new wife can kiss your ars... sorry, whistle for your money. Keep a record of his threats on this for the court.

fatbelly

For most joint debts you would be 'jointly and severally liable', i.e. each of you is liable for the whole amount.

A tax credit overpayment is the only case I have heard about where they can divide the debt in two and allow you each to pay half. Was this the actual agreement with them? Did they set that out in writing? Did they cancel the direct debit, or you?

Some more info here

http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm555410.htm

As for him paying a statute barred debt, again that's his choice. Under England/Wales law the debt still exists, it just can't be enforced. I wouldn't bother. I'd tell them I had other priorities and quote OFT guidance. But it's his choice. You don't have any liability at all if it was in his name alone.

Giraffeseeker

Yes, the tax credit office suggested a split when I told them I was divorced. They set up a DD schedule with the final payment being last December for one penny over half (as it was an uneven figure) and so I didn't need to cancel the DD. I have the schedule of payments from them in writing.

I can't honestly see a court making me pay it when I have paid half, even if they technically can.

I wonder if my ex had even checked that the DCA is actually collecting the IF loan? He has a common surname, it might not even be his! Might tell him to just send a prove it letter.

Giraffeseeker

Ah - from that link "Each claimant in a HHBD case is now only required to repay 50% of an overpayment, even if their ex-partner does not pay their share."

Perfect. Thank you!

fatbelly

tintingirl wrote: »

I wonder if my ex had even checked that the DCA is actually collecting the IF loan? He has a common surname, it might not even be his! Might tell him to just send a prove it letter.

Sounds like you know more about debt than he does. Does he realise that,once a debt is statute barred, it stays that way even if acknowledged later?

Letter six in this thread

Giraffeseeker

I don't know, but I will tell him, thank you.