Can someone go bankrupt with a loan in an exes name and it not affect them??

Finallysorted

Hi all

Urgent advice would be much appreciated. A friend of mine is having a nightmare. They want to go bankrupt but feel they cannot because they took a loan with an ex-partner years ago which required his signature as well, so his name is also involved. There is currently £9,000 owing on it.

Her ex is threatening to take her to court as the loan company have sent a letter to his address.

If she were to go bankrupt is there any way she could put the loan in the bankruptcy but keep his name out of it so that it wouldnt affect him or his credit rating in any way??

All advice welcome

Flm67

If your friend goes bankrupt and this is a joint loan then liability for the loan falls to the ex to pay. Hope this helps.

[Deleted User]

It sounds like the ex signed as either a co-applicant on the loan or as a guarantor - either way that would give them liability.

alastairq

With BAnkruptcy, one cannot pick & choose what debts are included, and what are not!

Joint liability means just that...and should be considered whenever embarking on joint financial ventures.

Which is why financial institutions/credit companies like joint accounts.

But then, when we marry, we 'marry' for life, don't we?

Nobody considers their marriage will be finite..do they?

But, perhaps we should?

Let the Ex go to Court, it will be disappointing for them.

Colliz_2

Ah, I think this sort if answers my question then. My ex ran up business debts after I was no longer involved, but the bank invoked guarantees that we both signed when we set the business up. I declared bankrupt as I just couldn't afford it and admitted it, whilst he never attempted to make a payment towards it then and ever since. Does this then mean that when I am discharged in February that he will become liable for the whole debt?

alastairq

Never mind your Discharge date, you ceased to be liable for any unsecured debt which pre-dates the bankruptcy [or, the account does].....at the very moment the Judge stamped your Bankruptcy Petition.

One reason why your petition is dated AND timed.

Colliz_2

Oh yes, realise that - I just don't want to think that my ex will get off scott free from the whole lot as well just because I've been brave enough to declare bankrupt and have to live with the damage for the next 7 years or so

alastairq

Colliz wrote: »

Oh yes, realise that - I just don't want to think that my ex will get off scott free from the whole lot as well just because I've been brave enough to declare bankrupt and have to live with the damage for the next 7 years or so

six years, perhaps?

Colliz_2

Ok, six years. Sorry, I thought that this board was for advice and support, not sarcasm

alastairq

Colliz wrote: »

Ok, six years. Sorry, I thought that this board was for advice and support, not sarcasm

I agree, sarcasm is misplaced....but so is generalised or misplaced information.

When someone posts on this forum stating that BR is noted on credit records for 7 years, then either they are misinformed, or being flippant.

There is enough misinformation banded around concerning bankruptcy,which those who merely lurk, might pick up on & find confusing.

slickric1234

debt should pass on to the ex sadly

from the way its written i assume they were guarantor or applied for loan jointly even tho the money was for the person going bankrupt

this is the big risk of being a guarantor or cosigning someones loan
mate of mine stupidly did it for his brothers business. its going ok atm but if it fails could really hurt him as he owns a house and his brother doesnt have much of value so theyd likely go straight after my friend for the cash

to me even though legally they wouldnt owe ex anything
if someone had done me a favour in cosigning a loan i would still think morally i should be trying to pay them back in the future as and when i could, as generally for someone to cosign you a loan or guarantee it they would generally be family very close friend or SO
to tuck up your onetime nearest and dearest just because you legally can just seems wrong

list of people id ever cosign or guarantee a loan for has just shrunk even further.
its one thing lending someone spare money you have and although would miss if you didnt get it back, wouldnt put you in future financial hardship, but to cosign a loan or mortgage could put you in a horrific situation that may take years to pay off or even drag you into bankruptcy too