Sequestration Scotland

InTheDarkHubby

I have recently discovered that my wife is in massive debt and I have a few questions as to how it all effects me - the InTheDarkHubby
I've looked into Sequestration, which seems to be our only option....

Firstly, is it ALL her debt that I am responsible to assist paying back or is it just debt accumilated since marriage? Am I even responsible at all?
If we were to divorce (which has crossed my mind a lot lately) would I still remain responsible to assist re-payments etc?
Because it is not my debt (i hate having a bank overdraft, let alone any debt) how long would it take for me to be clear from the Sequestration and regain control of my finances and my life?

I am sure there are other questions that I need to ask, but these are the ones, at the moment, that I cannot seem to find any advice on.
Please, if you are currently in this situation yourself, I would appreciate advice.

Thanks

wildheart83

You are only liable to repay debts which are in your name, either jointly or solely. It sounds as though your wife's debts are in her name?
If they are not in your name, then you don't have anything to go bankrupt over.
If you were to divorce then your wife would basically take her debt away with her, leaving you free to carry on as normal.
The issue is if your wife was to go BR, then any joint accounts you have would be affected, and your credit file affected because of this.

Hope this makes some sense to you

Buzby

Dear me no - only on joint arrangements will you have any responsibility. Marriage does not bind you to her debts either before or since marriage.

From what you say, she may benefit from sequestration, but you'll need to check things like mortgages (if joint) as this may directly affect you.

InTheDarkHubby

Thank you for those words. It's put my mind at ease a little.
I know one of her debts concerns council tax from a previous tenency excluding myself. I also know another is for current tenency since I moved in. (Unbeknown to me, although she's paid, she's not paid as a couple but as a single tenent.) What happens in this instance?
We had a joint account before, but only for around 6 months as funds were rarely available without me touching said account.

InTheDarkHubby

Hi People.
Still no advances with the meetings that are to be arranged. It's worrying me how long it's taking to get organised as the longer it goes on, the more worried I am becoming.
Although the previous posters put my mind a little at ease, I cant help but think that the Counil Tax debts are a different kettle of fish.
Further advice sought from anyone who is an expert in the field, has been or is going through this situation too.
I'll again say that I'm in Scotland, and as far as I know, bankruptcy law in scotland is different to those in England and Wales.
Thanks

InTheDarkHubby

Right - further update...

I have just literally found out this instant that my wife has already filed for a Sequestration (without my knowledge) and this was granted way back in September. It's to do with unpaid council tax.
Can someone please tell me where i stand now, because I am, if I'm honest, absolutely bricking it at this precise moment!!!

coolcait

The fact that your wife is already bankrupt doesn't change any of the advice you've already been given.

- you are not responsible for any debts which are in her name only

- you are responsible for any joint debts, and there's a possibility that your creditors will chase you for those debts, now that they can't chase your wife for them

- you need to get advice, for yourself, on the Council Tax debt for the property you share with your wife. You need to find out whether or not it is a joint debt, or a debt in your wife's name only. If it's a joint debt, the council can probably chase you for payment of the full amount which should have been declared.

- if you and your wife are joint owners of you home, you need to get advice on that

Bottom line - if your wife is already sequestrated, you need to get advice for yourself. Face to face, or on the phone, with a real life money adviser.

Someone you can tell the whole story (in a way that isn't always advisable on the internet), so that they can advise you based on all the facts.

National_Debtline

Hello there,

Here is our fact sheet covering the bankruptcy process in Scotland:

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=01_bankruptcy

Given the circumstances we would urge you to seek further advcie to ensure that you're fully aware as to what your position might be. As already mentioned your liability for any joint debts (i.e. the council tax) would still stand.

if you have any specific questions feel free to post them up, we'll do our best to answer any for you.

Best wishes,

David @ NDL.

InTheDarkHubby

Today I visited the local council office and am delighted to hear I am not liable for any of the debts despite being married to the named person on tenency agreement.
Obviously I couldn't get full info due to Data Protection. But I did find out about my own personal situation.

From April 2013 the rules will change and spouses will become liable for rent/tax arrears from the 1st, but the debts have now been written off due to her sequestration, meaning there is no debt for me to be liable for.

I've had the sense to ask for this in writing so that there is no come back in the future.

If ANYONE is going through the same at this moment in time, get yourself to the Citizen Advice and your local Council Office. Every persons situation will be unique and as I've previously mentioned, rules will be changing as of 1st April 2013

RBSB

Hi

The above is a website with an anonymous forum supported by representatives of a few companies who administer trust deeds. sequestrations and DAS schemes for Scottish residents.

Impartial but well-informed advice from people going through it and experts on the practicalities and legal side of things.