Can Anyone Help with Simple Info

tiredofpoorservice

A friend of mine is estranged from her husband and is going through a (quite messy) divorce which is nearly finalised.

He has just declared himself bankrupt.

Can anyone explain in simple terms what implications this has for her? Does she take on any liability for any of his debts? The house (in joint name) is being repossessed but will she still get her share of profit from the sale?

Obviously, it would be best for her to get proper legal and financial advice but she simply cannot afford this - she has been the faithful and dutiful housewife and mother to her husband who has now run off with another woman so she has no savings, no career and two children to maintain.

Any help and advice much appreciated...


Thankyou so much


TOPS

Mouse1812

NO, she does not have any responsibility for HIS debts but will be liable for any that were in joint names.

YES, she should get her share, in full, of any profit from the house sale.

If she has any joint accounts she should try and get her name off them ASAP.

alastairq

hi......

Can anyone explain in simple terms what implications this has for her? Does she take on any liability for any of his debts? The house (in joint name) is being repossessed but will she still get her share of profit from the sale?

Included in his bankruptcy are all unsecured debts which are wholly his...not from joint debts.

If any joint debts exist, then whilst he is protected by the BR, she is not, and can be pursued for the whole amount, by the creditor.

If no joint debts exist, then she has no worries.

Re the house?

If it has [positive] equity, then she will get her share of what's left after all mortgages and secured loans are sorted. The OR will take his share of what is left.

If the property is in negative equity, or there is insufficient value left after the mortgage is settled, and any secured loans are left without being paid, these become unsecured. His BR will again protect him, but she can be pursued for the whole amount.

She needs to terminate all joint accounts still active, to lessen the effect of 'association'..

oh dear! 'His' And Her's' refer to the OP's friends

SteveABC

Sorry to hear this. It happened to me. My wife left me and declared herself BR. I had no prior knowledge she was going to do it.

Absolutely everything was in joint names and I became responsible for the lot and was (quite aggresively) pursued by some creditors, including the bank (Lloyds TSB), who withdrew the overdraft facility and asked me for the full amount.

I struggled to pay for a while, but it was beginning to affect my mental health, so after much advice (and because the house was in substantial negative equity) I was forced into BR as well.

The danger here seems to be that if there is no profit after the sale, the shortfall will become her responsibility due to her ex being protected by his BR. Is she sure there will be equity left over after the repo (remember all the fees and charges)?

I wish her all the best.